In the Family Ogists Who Resigned from Ing Fast Tracks Through the Beaumont’S 13-Member De- Legislature

20110926-NEWS--0001-NAT-CCI-CD_-- 9/23/2011 5:45 PM Page 1

www.crainsdetroit.com Vol. 27, No. 40 SEPTEMBER 26 – OCTOBER 2, 2011 $2 a copy; $59 a year

Page 3 Suppliers’ radar picks up advances in auto safety tech Growing Faurecia to hire 800

we’ve seen such strong growth and opportuni- French supplier rides globalization wave ties, we’ve outgrown this building.” Faurecia North America also is investing BY DUSTIN WALSH ors, exteriors, seating and $19.2 million to house and manufacture interi- CRAIN’S DETROIT BUSINESS emissions to plan a 20,000- ors from a new facility in Fraser, and in future square-foot expansion of its expansions, which were supported by tax cred- A French invasion is hitting our shores. It’s headquarters. its from the Michigan Economic Growth Authority. not led by cuisine or fashion, but by automotive In July, Faurecia North Faurecia’s U.S. expansion is led by new con- supplier Faurecia S.A. America moved 100 employ- tracts with the Detroit 3 as the automakers con- New head of Palace Sports The North American subsidiary, headquar- ees from its exteriors unit tinue to push for global platforms. tered in Auburn Hills, is on pace to hire 800 em- into a new nearby technical “The globalization of (Detroit 3) platforms promises fan-friendly ployees in engineering, human resources and center, also in Auburn Hills. benefits international suppliers,” said Bernard changes purchasing, among others, this year in Michi- “When we moved into this Swiecki, senior project manager of sustainabil- gan. Faurecia North America has nearly doubled Heneka facility, we thought it’d be ity and economic development strategies group its employee base in the state, which is now at bigger than we needed,” said at the Ann Arbor-based Center for Automotive Re- approximately 2,000. Mike Heneka, president of Faurecia North Inside The growth has caused the supplier of interi- America, speaking from its headquarters. “But See Faurecia, Page 25 Search goes on for solution to personal property tax, Capitol briefings, Page 7 5 top oncologists Finance Extra quit Beaumont Double-dip recession? Stay the after deal nixed course, Disagreement emerges Page 9 over direction of program Crain’s List BY JAY GREENE CRAIN’S DETROIT BUSINESS

Largest money managers, In a dispute over an aborted business deal Page 13 with a for-profit physician company, five top radiation oncologists, including international- ly renowned researcher Alvaro Martinez, chairman of the department, said they will This Just In leave Beaumont Hospital in Royal Oak, effective JOHN SOBCZAK Nov. 1, hospital officials acknowledged. Snyder asks for general fund Under Ryan Maibach, Barton Malow Co.’s strategy of having its own workers handle jobs that other Crain’s confirmed that companies might subcontract entails buying specialized equipment, such as this $500,000 concrete leveler. Frank Vicini, chief of oncolo- cash to cover part of UI debt gy services, also has an- A move to take $38.25 mil- nounced he will quit his job lion from the general fund to and resign from the medical help pay an interest bill on staff at Beaumont. the state’s $3.1 billion federal Two other radiation oncol- unemployment debt is mak- All in the family ogists who resigned from ing fast tracks through the Beaumont’s 13-member de- Legislature. partment are J. Vito An- The Snyder administra- Next generation at Barton Malow aims to keep work in house tonucci and Michel Ghilezan. tion made the official request The name of the fifth physi- Martinez early last week and by BY DANIEL DUGGAN enue of $1.3 billion is significantly higher than cian could not be confirmed. Thursday the supplemental CRAIN’S DETROIT BUSINESS the $235,000 in revenue when Ryan’s great All were under hospital em- appropriation had cleared grandfather, Ben Maibach Sr., worked for the ployment contracts. the Michigan Senate and was Barton Malow Co. started a new chapter in its company in the 1920s, the goal is the same: “We have five radiation on its way to the House. nearly 90-year history in April when it named growing as a full-service contractor. oncology physicians leaving The state’s total interest Ryan Maibach as president, a move that “At the heart of it, the basics, the construc- Beaumont to pursue other payment, due by Sept. 30, is marks the fourth consecutive generation of tion work, has been the same since the very be- opportunities,” said Colette about $106 million. Available Maibach leadership in the Southfield-based ginning,” said Ryan Maibach, 37. Stimmell, Beaumont’s direc- See This Just In, Page 2 construction company. The basics include the company’s own em- tor of corporate communica- And while the company’s projected 2011 rev- ployees doing more construction work, rather tions. “We have a large de- than using a series of subcontractors; Ryan partment that remains very Vicini Maibach’s strategy for the company includes strong with a committed growing its own workforce. team of radiation oncologists, biologists and Ryan’s 65-year-old father, Ben Maibach III, nurses.” remains CEO of the company and will remain Stimmell said the physicians left after they visible in business development, community became unhappy with a decision in May by the involvement and some of the company’s strate- Beaumont Health System board to nix a joint ven- gic decisions. ture deal with a for-profit radiation oncology company. NEWSPAPER See Barton Malow, Page 25 See Beaumont, Page 24 20110926-NEWS--0002-NAT-CCI-CD_-- 9/23/2011 5:51 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS September 26, 2011

need to decide whether consoli- local operations and about 90 or fewer employees. dating or sharing services will be jobs, too. Under Senate Bill 693, the Mi- DISCUSSION TO TACKLE AUTO JOBS THIS JUST IN beneficial in controlling or reduc- But in its application, the com- Health Marketplace would be es- What is Michigan doing to remain ing costs and improving the de- pany said it wanted an abatement tablished as an online clearing- ■ From Page 1 attractive to its signature industry? livery and quality of services. to offset costs of a major renova- house for health insurers to sell That’s the central question guiding It will “illustrate what they’re tion to its office on South State low-cost and federally subsidized an upcoming policy discussion revenue from a state solvency tax already doing and what they Street, which would result in the coverage for people who meet cer- planned by Crain’s Michigan that began this year on thou- could do in the future,” said for- hiring of 20 new employees. The tain income guidelines policies. Business and Crain’s Detroit sands of Michigan employers, mer state Rep. Marie Donigan, D- council will hold a public hearing People who earn up to 400 per- Business. Crain’s is hosting a and from state unemployment Royal Oak, now principal consul- on the request. cent of the federal poverty level, practical session titled “Can penalty and interest funds, will tant to McKenna. Firm President — Tom Henderson or $88,200 for a family of four, will Michigan grow auto jobs?” total nearly $67.8 million. That Phillip McKenna and Donigan will be eligible for subsidies based on Planned in partnership with the leaves the state $38.25 million lead the McKenna team on the income. Detroit Regional Chamber, Automotive News and the Original short of what it needs to make study. Hantz Bank’s third branch In 2016, employees who work in Equipment Suppliers Association, the the payment. Gov. Rick Snyder’s new incen- to open in Ann Arbor companies with up to 100 employ- The state budget office asked discussion will take place 7:30-10 tive-based revenue-sharing pro- ees will be eligible for the ex- a.m. Oct. 4 at The Henry hotel in lawmakers to appropriate the Davison-based Hantz Bank will gram makes money available to change. Dearborn.The title sponsor is Blue continue its expansion when it general-fund money, which was communities that adopt best Insurance would be available Cross Blue Shield of Michigan. set aside in the current budget opens an Ann Arbor branch on practices, such as consolidating on or before Jan. 1, 2014. Topics include what Michigan is Oct. 31, in the former headquar- year and never spent. or sharing services. — Jay Greene doing to remain attractive to the The state is still looking at op- — Amy Lane ters of the MidWest Financial Credit automotive industry and what other tions on how it will make next Union at Green and Plymouth regions are offering in the way of year’s interest payment. roads. Leader Dogs CEO leaves economic development incentives to The office became available lure OEMs and suppliers. — Amy Lane UM spinoff not planning to leave Leader Dogs for the Blind Presi- with the merger last year of Mid- Speakers include Sandy Baruah, Arbor Networks, a company dent and CEO Greg Grabowski has West and DFCU Federal Financial president of the left his position for undisclosed McKenna doing shared-services spun out from the University of Credit Union of Dearborn. Detroit Regional reasons. Michigan more than a decade ago, The bank also hopes to an- Chamber; Peter study for county, municipalities Grabowski joined the won’t be leaving town any time nounce soon its selection of a new Brown, publisher Rochester Hills-based agency in A Northville-based municipal soon, based on application for a headquarters site in Southfield, and editorial January 2008, after serving as director of services firm is embarking on a tax abatement the company has to be closer to its parent compa- vice president for development Automotive study that could provide a guide filed with the Ann Arbor City ny, the Hantz Group. for the National Hospice Founda- News; Micki for shared services among com- Council. — Tom Henderson munities throughout the state. The company, which provides tion. Maynard, senior editor of McKenna Associates Inc. was network security for major Inter- Leader Dogs named chief fi- Changing Gears; nancial and administrative offi- awarded an $18,600 contract by net providers, was bought in 2010 Bill introduced to create and Neil De west Michigan’s Van Buren by Texas-based Tektronix Commu- health insurance exchange cer Sue Daniels as interim CEO. Maynard Koker, president County and 31 municipalities nications, a division of Danaher Leader Dogs reported a loss of and CEO of the Original Equipment within the county, to look at ways Corp. Sen. Jim Marleau, R-Lake Orion, $1.6 million in fiscal 2010 after a Suppliers Association. communities can cut costs and Other UM spinoffs have moved chairman of the Michigan Senate loss of $5.7 million in 2009. Tickets are $40 each or $35 each for have more efficient operations out of state following acquisi- health policy committee, has in- Its revenue increased last year groups of 10 or more when purchased and delivery of services. tions or investments, including troduced a bill to create a non- to $9.1 million from $5.3 million in advance, and $50 at the door. The study, to be completed by HandyLab Inc. and Mobius Mi- profit health insurance exchange the year before, as its invest- For more information, visit Dec. 20, is designed to provide the crosystems Inc., and some feared for individuals and people who ments recovered. www.crainsdetroit.com/events. municipalities information they Arbor Networks would move its work in small businesses with 50 — Sherri Welch RECESSION THIS.

BUSINESS SAVINGS 13-MONTH CD

Along with top-rated service, enjoy a no-strings The perfect match for your savings is our business savings account featuring: 13-month CD. Whether business or personal, No minimum balance our rate makes saving easier than ever. No checking account requirement Low minimum balance Deposits up to $2 million No checking account requirement flagstar.com/bizsavings Deposits up to $2 million flagstar.com/bizCD

Call, click, scan, or visit: (800) 642-0039 flagstar.com/business

*Available only on new Smart Savings accounts opened in conjunction with this offer. Not available for public units. 1.25% Annual Percentage Yield (APY) is accurate as of 9/7/2011 and is guaranteed for four months after account opening. The 1.25% rate is guaranteed on balances up to and including $2,000,000. Balances over $2,000,000 will earn 0.30% APY. After promotional period, account will revert to the current posted rate for the Loyalty Savings account, Statement Plus Savings account, Statement Savings account or Business Savings Plus account depending on your banking relationship. Fees could reduce earnings. Funds may not currently be on deposit with Flagstar Bank. Cannot be combined with any other offer. Conditions and restrictions apply. Offer subject to change or cancellation at any time without notice. Minimum amount to open an account: $50. Limit one account per customer. **Stated Annual Percentage Yield (APY) is accurate as of 9/7/2011. Account fees could reduce earnings. Withdrawals may result in imposition of applicable early withdrawal penalties. Minimum opening balance is $500. Maximum deposit is $2,000,000. Additional deposits not allowed during CD term. At renewal, the account will move into a 12-month CD at the current posted rate. Not available for public units. Certain restrictions may apply. Cannot be combined with any other offer. Please contact your local Flagstar branch for more information. Limit one account per customer. 20110926-NEWS--0003-NAT-CCI-CD_-- 9/23/2011 6:07 PM Page 1

September 26, 2011 CRAIN’S DETROIT BUSINESS Page 3 Car safety suppliers zero in on radar Meetings and conventions

BY DAVID SEDGWICK If TRW’s unit detects a possible used for intelligent cruise control. in introductory discussions with CRAIN NEWS SERVICE collision straight ahead, it could au- Technically, the most difficult multiple automakers,” Thoeny said tomatically hit the brakes. If it de- scenario to monitor is a side-im- during an interview at the show. FRANKFURT, Germany — For tects a threat to the side or rear, it pact collision. For example, if an- Delphi, TRW and other suppli- suppliers of safety equipment, the would prepare the airbags to deploy. other vehicle suddenly speeds out ers are developing collision-avoid- next big thing is 360-degree collision The unit, called AC1000, probably of an alley onto the street, the ance systems that will allow au- avoidance. will enter production around 2015, radar would have very little time tomakers to add safety features as TRW Inc. is developing a radar said Martin Thoone, TRW’s vice to warn the motorist. the technology matures. network that will detect oncoming president of electronics engineer- In such situations, Thoone said, Intelligent cruise control and vehicles from any direction — ing, at the Frankfurt auto show. it might not be possible to take eva- lane-departure warning systems front, sides or rear. At each corner “We are in advanced develop- sive action by automatically hit- would come first. When automak- of the vehicle, a radar unit moni- ment with major automakers,” ting the brakes. But the computer ers are confident that the systems Cobo pushes renewal theme tors objects and transmits the data Thoone said. could still prepare the side airbags work, they would add features such to a central computer. TRW’s auto- The system’s radars employ so- to deploy. as automatic emergency braking. to drive business, Page 15 motive unit is based in Livonia. called patch antennas that allow Delphi is working to develop its “It’s going to be step-by-step,” said Troy-based Delphi Automotive is them to scan for objects in two di- own system, said Michael Thoeny, Peter Lake, TRW’s executive vice working on a similar system that rections, providing a wider field the company’s engineering direc- president of sales. “Consumers and also would incorporate cameras. than conventional radar units tor of electronic controls. “We are automakers have to be confident.” Company index These organizations appear in this week’s Crain’s Detroit Business: Accountable Care Physicians ...... 21 Advance Capital Management ...... 11 Business Alidade Capital Fund ...... 4 Ann Arbor Area Community Foundation ...... 13 Ann Arbor State Bank ...... 12 Bank of Ann Arbor ...... 12 Connect pilot Bank of Michigan ...... 12 Barton Malow ...... 1 Baskin Law Firm ...... 24 effort to back BBK ...... 12 Beaumont Hospital ...... 1 Blue Cross Blue Shield of Michigan ...... 21 Blueprint for Aging ...... 13 54 companies CareerVitals ...... 17 Catholic Social Services of Washtenaw County . . . 13 Center for Automotive Research ...... 25 Y ICHELLE UÑOZ B M M Citrin Group ...... 9 SPECIAL TO CRAIN’S DETROIT BUSINESS Cobo Center ...... 15 The state plans to offer support Conway Mackenzie ...... 25 to 54 companies under a new pilot Delphi Automotive ...... 3 program aimed at second-stage Detroit Medical Center ...... 21 businesses, said Mike Finney, Detroit Metro Convention & Visitors Bureau ...... 15 president and Detroit Pistons ...... 3 CEO of the Detroit Science Center ...... 24 Michigan Eco- Dietz Trott Sports & Entertainment ...... 23 nomic Develop- Dynamic Advisory Solutions ...... 9 ment Corp. Faurecia North America ...... 1 The pilot is Fidelity Bank ...... 12 part of the Flagstar Bancorp ...... 4 state’s new Pure Gregory J. Schwartz & Co...... 9 Michigan Busi- GLENN TRIEST NBA labor issues are among the challenges facing Dennis Mannion as he tackles the job of filling seats and boosting J.P. Morgan Chase ...... 9 ness Connect revenue for Palace Sports & Entertainment. Managed Assets Portfolio ...... 10 program, an- Finney Michigan Chamber of Commerce ...... 7 nounced in June, to promote growth of in-state Michigan Economic Development ...... 3, 4 small and midsize businesses. Michigan Liquor Control Commission ...... 22 Huntington National Bank commit- Michigan Municipal League ...... 7 ted $2 billion to the program, and Right-hand Mannion Midtown Detroit ...... 8 DTE Energy Co. and Consumers Ener- Office of Community & Economic Development . . . 13 gy Co. each have earmarked Palace Sports & Entertainment ...... 3 $250 million for purchases from Gores’ pick to run Palace expects room to grow Plante Moran Financial Advisors ...... 10 Michigan suppliers and vendors. Prestige Meetings & Events ...... 15 Search Entrepreneurs ...... 17 The Cassopolis-based Edward BY BILL SHEA executive Dennis Mannion, 52, St. Mary Mercy Hospital ...... 21 Lowe Foundation has been contract- CRAIN’S DETROIT BUSINESS runs the show, and he envisions ed to help manage the pilot pro- Tom (Gores) sits an arrangement with Gores simi- Talmer Bank ...... 12 gram. When Tom Wilson ran Palace “ lar to what Wilson and Davidson Telemus Capital Partners ...... 11 Participants come from a pool of Sports & Entertainment, he had a in a position that shared. The Arvina Group ...... 24 just more than 100 applications so- nearly free hand from owner Bill “The structure is very much TRW ...... 3 licited from local economic devel- Davidson to operate the enter- you can tap his the same as Tom’s. I believe I’ll be United Outstanding Physicians ...... 21 opment offices throughout the prise as he saw fit. given full, free rein in growing United Way of Washtenaw County ...... 13 state. The close, trusting Wilson- knowledge. He’s not market share and revenue to Valenti Capital ...... 9 An independent review board Davidson relationship was well- grow the Palace and Pistons,” he Walbridge Aldinger ...... 25 will select the 54 companies by documented not only because of much of a said. mid-October. the financial success of the busi- He intends to do that by im- Speaking about the pilot pro- ness — including the construc- meddler. proving the fan experience at the gram at a Crain’s Second Stage tion of The Palace of Auburn Hills — ” venues and by streamlining the Workshop last Thursday, Finney but because it helped lead to Dennis Mannion, organizations. Department index said second-stage companies are championships by the Detroit Pis- Palace Sports & Entertainment Mannion said he reports direct- ready sources of economic growth tons. ly to Gores and to a Platinum op- BUSINESS DIARY ...... 18 for the state, and the administra- Davidson died two years ago, were sold in June to California erating committee for PS&E that CALENDAR ...... 20 tion of Gov. Rick Snyder wants to Wilson left last year to work for private equity billionaire Tom includes Phil Norment, Plat- CAPITOL BRIEFINGS...... 7 tap into that potential. the Ilitch family in Detroit, and Gores. CLASSIFIED ADS ...... 21 See Pilot, Page 24 See Mannion, Page 23 Palace Sports and the Pistons Now, former Los Angeles Dodgers KEITH CRAIN...... 6 OPINION ...... 6 Women to Watch Join Crain’s house party Wednesday OTHER VOICES ...... 6 There’s still time to sign up for the THIS WEEK @ Find profiles on this year's 16 Women PEOPLE ...... 18 to Watch, featured in last week's issue, reception at the Roostertail, WWW.CRAINSDETROIT.COM crainsdetroit.com/womentowatch crainsdetroit.com/houseparty RUMBLINGS ...... 26 WEEK ON THE WEB ...... 26 20110926-NEWS--0004-NAT-CCI-CD_-- 9/23/2011 3:47 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS September 26, 2011 Ex-Flagstar execs jump into real estate; Alidade scoops up deals in buyer’s market

BY DANIEL DUGGAN “Building confidence with sell- CRAIN’S DETROIT BUSINESS ers, that you’ll close a deal, takes time,” he said. “This is what Oxford The state of the real estate mar- does full time. We only tie up prop- ket — forcing investors to sell erties that we intend to close on.” properties at unheard-of prices — That experience is also needed spells wreckage for most real es- to find the deals, Hauptman said. tate companies. “The smart buying opportuni- But it spells opportunity for ties are not plentiful by any Mark Hammond and Geoff Lang- means, it’s a full-time job for us to don, leading an upstart real estate Hammond Langdon uncover good opportunities,” he investment fund, Alidade Capital said. “The key to getting access to Fund LP, that’s been buying local can close deals, said Dennis those opportunities is that we have real estate at its lowest point in at Bernard, president of Southfield- cash ready to go.” least 20 years. based Bernard Financial Group. Hammond and Langdon say The former executives with “Sellers are looking for assur- their backgrounds in banking lend Troy-based Flagstar Bancorp Inc. ance of being able to close a deal,” them the credibility they need, but come to the market when many Bernard said. “With the capital they need to build that track record companies are being forced to sell raised, they can offer that assur- to attract investment money from high-quality property at low prices. ance.” institutional investors, retirement “Now is when the opportunities In borrowing, he said, the ability funds and municipal pensions. exist,” said Hammond, managing to come in with a clean track record “Long-term, the goal is to make partner. “It’s the best time to in- also gives them an advantage. this a billion-dollar fund,” Ham- vest new capital since 1991.” But a new fund needs to build a mond said. Alidade Capital has done four track record, said Jeff Hauptman, Daniel Duggan: (313) 446-0414, deals since November, spending president of Ann Arbor-based real [email protected]. Twitter: $20 million in Ann Arbor, Sterling estate fund Oxford Cos. @d_duggan Heights and Dallas. The firm’s four principals and their network of in-

INTELLECTUAL PROPERTY ATTORNEYS vestors have raised nearly $10 million in equity.

Hammond said they can raise money and borrow money because Alidade hasn’t had to give proper- “ ty back to lenders, default on loans They are not just or have financial problems the way most local investors have. “patent lawyers, but “So we can come in without the legacy issues everyone else has,” our trusted advisors. he said. Hammond comes with a long ré- sumé of bank work as co-founder of JAMES SCAPA, CEO Altair Engineering Flagstar Bank, serving as president for 15 years. Hammond and his father, Thomas, were forced out of their roles in 2009. The change in leadership to president and CEO, YOUNG BASILE. Advisors to the world’s most innovative companies. Joseph Campanelli, came after New York-based MatlinPatterson Thrift Investments L.P. made a series of investments to take a majority ANN ARBOR TROY SILICON VALLEY share of the company’s stock. • • Langdon, who had been a senior WWW.YOUNGBASILE.COM vice president at Flagstar, also is a managing partner and joins Ali- dade partner Steve Faliski, who had a career in corporate finance with Chase Bank, and Michael Luc- ci, who handled real estate acquisition for Bally Total Fitness. Having an insider’s perspective Experience the difference. on bank operations, Langdon said, gives them the insight to know Work smarter for your business. Now offering 1/4 share partnership opportunities in the following aircraft. what investors need to sell. “We’re not looking for distressed GULFSTREAM III, pictured • HAWKER 800 assets,” Langdon said. “We’re looking for quality assets that are coming off distressed balance sheets.” Among the recent acquisitions is the Royal Oak Station 3 Lofts condo development in Royal Oak, bought for $3.6 million, according to Wash- ington, D.C.-based CoStar Group. The firm also acquired Ashley Terrace, a 99-unit condo building in Ann Arbor, for $6 million. The loan on the building was $20 million, according to CoStar. “The idea is to go after condo buildings that are being used as apartments,” Langdon said. “Then Size, comfort, value and versatility that drives your potential. we can examine whether to take The 2011 Sprinter Van — exclusively at Mercedes Benz of Novi. Visit us today an exit of selling them again as to see the area’s largest Sprinter inventory. condos or continuing to operate them as multifamily.” Mercedes Benz of Novi Having raised capital ahead of 39500 Grand River Ave. Novi, MI 48375 time gives the Alidade group a sig- www.skywayavjets.com Ph: 248-426-9600 (Sales & Service) Call Geoff Sherman today, 1.248.568.0979 nificant advantage in being able to www.mercedesbenzofnovi.com assure lenders and sellers that it DBpageAD.qxp 9/9/2011 9:00 AM Page 1 20110926-NEWS--0006-NAT-CCI-CD_-- 9/23/2011 5:33 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS September 26, 2011 OPINION LETTERS ‘Buy Michigan’ focus Real estate salutes tax change Only two things are cer- the previous campaign. simpler and, arguably, fairer than tain — death and taxes. Tax policy is influenced both of its predecessors, the MBT But tax policy in America by the rapidly shifting po- and the Single Business Tax. good for jobs growth is far from certain. We litical sands of every One significant benefit of the know an ox will be gored; branch of government. In new tax to the commercial real es- the question is, whose ox? our bipolar political land- tate industry is that, unlike the inally, Michigan is “normalizing” relationships with Understanding tax poli- scape, taxing priorities MBT, only C corporations are sub- China. Gov. Rick Snyder’s fast-paced Asian trade trip cy and how it affects our seem to lurch first to the ject to tax. “Pass-through” enti- F this week, with visits to Japan, China and South Korea, lives is critically impor- left, then to the right and ties, like S corporations, partner- is important — especially after Michigan was MIA in China tant. When a client in- back again. The result of ships and limited liability during the Granholm era. quires about the conse- all this uncertainty is felt companies are exempt from the quences of real estate Steve Sallen in boardrooms and living new tax, although owners of those China represents opportunities for Michigan companies to foreclosure, the discussion in- rooms all across the country. With entities will have to pay individual invest but also for China to invest in Michigan companies. evitably turns from the obvious government drowning in red ink, income tax on profits. As most Snyder is smart to begin rebuilding trade relationships damage caused by the loss of in- the left-right-left debate over how commercial real estate owners use with China, but as Michelle Muñoz reports on Page 3, his vestment to the less obvious tax much of our money we get to keep pass-through entities, the new tax strongest hand is focusing on companies already based here. implications of foreclosure. Often will continue for years. Protecting law should be a major benefit. insult follows injury, where seven- our hard-earned money will re- Another benefit of the new tax is At last week’s “Buy Michigan” event convened by Crain’s, figure losses can result in similar- quire frontline intelligence. that there is no tax liability in Michigan Economic Development Corp. CEO Mike Finney sized tax implications. In Michigan, we who depend on years when a business loses mon- outlined a pilot project to test “economic gardening” tools with In some countries, the “long the health of the commercial real ey. A major criticism of the MBT more than 50 Michigan second-stage companies — defined as view” may mean 20, 50 or even 100 estate industry should embrace one was that it imposed tax regardless companies with at least 10 employees and more than $1 million years. In modern America, the long recent tax change resulting from a of whether the taxpayer was mak- in annual revenue. view is measured in weeks or changing political climate. Recent- ing or losing money. months. Proper planning is more a ly, Gov. Rick Snyder signed into Let’s hope these winds of change Michigan has at least 50,000 such companies. If the state matter of reading political tea law the new Michigan Corporate blow more after-tax dollars into can create policies and partnerships to support their growth, it leaves than real strategizing. Per- Income Tax, which will replace the your pockets. will chip away at the nearly 1 million jobs lost between 2000 haps that’s why the media spends so Michigan Business Tax on Jan. 1. Steve Sallen is president and and 2010. As Finney reminded the crowd last week, the formu- much time hyping the next election The new tax, basically a flat 6 per- CEO of Southfield-based Maddin, la for many companies with growing sales holds that for every cycle even before the dust settles on cent of federal taxable income, is Hauser, Wartell, Roth & Heller PC. $100,000 in new sales, a new employee may be needed. The Cassopolis-based Edward Lowe Foundation, a nationally recognized entrepreneurship resource, will lead the program, matching companies to tools like in-depth market research to identify potential customer segments and TALK ON THE WEB peer-to-peer learning. In addition to new sourcing directions by state depart- From www.crainsdetroit.com Detroit is on the upswing, and ments to buy from Michigan-based companies, the state’s two Re: Playoff payoff: Nearly $5M a game Reader responses to stories and Gilbert’s contributions continue to help major energy companies — DTE Energy Co. and Consumers Only one comment is needed: Go blogs that appeared on Crain’s our city become more prosperous. Tigers! Energy Co. — have committed to increasing their in-state Web site. Comments may be Compass Commercial “spend” by $500 million combined. If more companies made William J edited for length and clarity. similar commitments, job growth would not be far behind. Re: Flagstar plans 30 branches Re: Reducing student loan debt Demand seems to be missing from How can you continue firing employ- the equation. Where are the large While I’m not in favor of com- ees from all branches and think it logistics firms, large cross-border Time to force online tax collection? plete student loan forgiveness, I is OK to continue building new businesses (e.g. auto OEMs), or the think the idea of lowering student branches? To tax or not to tax. like? loan interest rates is outstanding. Just a reader That’s the question for Michigan lawmakers considering It still keeps the responsibility of J.T. Pedersen forcing online retailers to charge Michigan residents a 6 per- paying debt on the person who agreed to take on debt, but it light- Missing from both proposals is Re: Castillo named CFO cent sales tax for online purchases. some needed vision. … What is at This issue has been kicking around for at least a decade. ens the burden a bit. of UM Health System een13 stake is the opportunity to create a The Michigan Retailers Association thinks the time is right to magnificent pathway connecting This is an awesome reversing of the brain drain. push it through. two nations. … Think 50 years out. Damian Zikakis Smart shoppers know they can buy big-ticket items online Re: Report gives edge Jack Caldwell to government-owned bridge to avoid the tax. Backers of a bill to collect the sales tax think it Re: Ex-DPS exec gets 5 years Detroit and Michigan have Re: Gilbert buying 2 more buildings could bring in $35 million a year. for taking kickbacks State income tax forms already ask residents to come clean enough problems to surmount Kudos to Dan Gilbert and his without having to try to survive with- team for proving that you can com- and estimate the value of purchases online and enter the esti- Who knew that the risk manag- out a healthy publicly owned interna- bine community betterment with eco- er for DPS was one of the riskiest mated amount of “user” tax owed. Maybe it’s time to formalize tional border crossing. nomic gain. employees on the payroll? that process. winwilloe Allan Skoropa John Galt KEITH CRAIN: Chaos is not a good thing for business Last week, a lot of folks had up- ning in terms of some my almost immediately. manufacturing capacity or in- what’s going to happen next. set stomachs with the ups and sort of jobs stimulus. No doubt a lot of that creasing the marketing budget, If we are recovering from a bad downs of the stock market. Right now, businesses uncertainty about Eu- chances are for many people, it’s recession, let’s figure it out and act This is no way to instill confi- are concerned about Eu- rope is plaguing our simply going to be wait and see. accordingly. dence in our U.S. economy. Busi- rope and how it’s coping own economy. Add to It would seem fairly obvious If we are heading into a double- nesses in Detroit as well as around with its own economic that the confusion of that no one has a decent crystal dip recession, then it’s time we fig- the country right now are trying to crisis. our own economy, and ball. Trying to figure out what’s in ure that out and act according to plan for — and predict — what will A lot of people are ner- the pot is boiling with store for your business is next to that information. happen next year. Budgeting is vous about the strength uncertainty. impossible. Certainly the gyra- But if none of us has any idea probably in high gear; some com- of the European econo- You certainly can’t tions of the stock market aren’t what’s happening, we do exactly panies may be planning to expand my. Lots of U.S. pension blame business execu- making anyone more comfortable. what is happening now: We do — others, maybe not. plans and businesses tives for worrying Any people who have a portion of nothing. We wait on the sidelines. What you want most in planning have money in various about the state of the their investments or their compa- And maybe we create a self-fulfill- is some stability in the economy. I European bonds. If any of those economy and what impact it will nies’ investments in the stock mar- ing prophecy. don’t think anyone cares about bonds or countries default, it will have on their businesses. Whether ket are probably spending far too No one said it would be easy. what the U.S. government is plan- come back to haunt the U.S. econo- they’re thinking about adding to much time trying to figure out And no one knows the outcome. 20110926-NEWS--0007-NAT-CCI-CD_-- 9/23/2011 5:36 PM Page 1

September 26, 2011 CRAIN’S DETROIT BUSINESS Page 7 Sub expiring biz credits for personal property tax?

LANSING — As the that needs to be annually fiscal 2012-2013 budget to help cov- league, said that while Michigan services important to residents Snyder administration debated and decided, said er a projected $8 billion Ohio bud- personal property tax revenue cur- and businesses. deliberates eliminating Capitol Tricia Kinley, senior di- get deficit. rently is not constitutionally guar- Options the chamber has been Michigan’s personal Briefings rector of tax and regulato- Kinley said that illustrates the anteed, the existing tax system does reviewing include phasing out the property tax, one option ry reform at the chamber. chamber’s point. protect revenue for local govern- tax — a scenario likely under the it has been looking at is The Michigan Municipal “We do not agree putting spend- ments, and that should continue. Snyder administration’s proposal how the state’s expiring League, Michigan Associa- ing on autopilot is good public pol- “Lawmakers can’t take the mon- — exempting new personal proper- business tax credits tion of Counties and oth- icy, no matter who is asking,” she ey for personal property tax be- ty from the tax, or exempting cer- might free up replace- ers are calling for the said. “If a state’s economy is slip- cause it’s collected locally — it tain dollar thresholds from the tax. ment revenue that could revenue guarantee and ping, then legislators need to ad- can’t be taken during appropria- Schor said the league is open to be directed to local gov- point to situations like just spending accordingly.” tions,” he said. “You’d have to options as long as those who count ernments and others. Ohio, which eliminated The Michigan Manufacturers Asso- eliminate the money entirely. on the tax revenue are held whole. The so-called “certifi- its personal property tax ciation also does not support a con- Kinley said the chamber sup- “We didn’t deal the hand, we’re cated” credits that were Amy Lane as part of a 2005 business stitutional guarantee, said Mike ports adequate replacement rev- playing the hand that was dealt. previously awarded — and individual tax re- Johnston, vice president of gov- enue for communities and recog- We’re OK looking at all the differ- like those for general Michigan Eco- form. Scheduled reimbursement ernment affairs. nizes that without personal ent phase-outs. But if you phase nomic Growth Authority projects and payments to locals are being re- But Andy Schor, assistant direc- property tax, some communities out, you have to phase in the re- for advanced battery manufactur- duced significantly in the two-year tor of state affairs for the municipal may struggle to provide essential placement.” ing projects — are being honored by the state in Michigan’s new business tax system. But they have a limited life. So, as they phase out, the money that the state no longer would be paying on the credits might have potential as a funding source for local governments that would be losing revenue from personal property tax elimination. The governor’s office confirmed that the administration has been exploring expiring certificated credits as one option. But there’s “nothing close to de- finitive at all yet, and there are nu- merous other pieces and parts as the governor and lieutenant gover- nor dive into this issue,” Sara Wur- fel, Gov. Rick Snyder’s press secretary, said in an e-mail to Crain’s. “They want to make sure it’s a thoughtful and deliberative process that examines all options, ideas and issues.” House Speaker Jase Bolger, R- Marshall, also sees that one option to fund some of the lost revenue for local units could be using the money from expiring tax credits, said Phyllis Browne, communications director for Bolger. “Those expiring credits alone provide almost half of the answer to the $1.2 billion personal property tax revenue question,” Browne said in an email. She said that Bol- Asset-based financing strength ger supports eliminating the personal property tax and sees it as a levy that “punishes job creators to help Olympic Steel prove its metal when they invest in Michigan,” but its elimination “must be done in a responsible way, and the rev- through challenging markets. enue for local units must be addressed at the same time.” ™ Data from the Michigan Depart- Opportunity at every step. ment of Treasury estimates certificated credits that will be claimed over the next several years: $293 million in fiscal 2012, $526 million in fiscal For over 57 years, one of Olympic Steel’s greatest strengths has been exceeding client expectations. 2013, $638 million in fiscal 2014, $637 million in fiscal 2015, $541 mil- Bank of America Business Capital has forged a close relationship with Olympic Steel using a similar approach. lion in fiscal 2016, $369 million in fiscal 2017, $355 million in fiscal 2018 We recently engineered an innovative $335 million facility expansion that enabled the company to acquire and $346 million in fiscal 2019. In a recent interview with Chicago Tube & Iron while achieving a lower cost of capital despite steel industry volatility. Melding powerful Crain’s for a separate story, Lt. Gov. Brian Calley said the administra- ideas and commitment delivered with the experience of the leading asset-based lender.* tion hopes to have a personal property tax proposal publicly present- ed in the form of legislation by mid-October. Visit bankofamerica.com/businesssolutions2 And as the Capitol moves toward debate, positions are being staked out. There’s pushback over constitutionally guaranteed revenue replacement sought by those who *Ranked No. 1 U.S. bookrunner of asset-based loans by Thomson Reuters 1H 2011. rely on personal property tax rev- “ Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates enue, with the Michigan Chamber of of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation Commerce publicly opposing the (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., all of which are registered broker-dealers and members of FINRA and SIPC, y y idea as bad policy. and, in other jurisdictions, by locally registered entities. Investment products offered by Investment Banking Affiliates: Are otN FDIC Insured May Lose Value Are Not Bank Guaranteed. ©2011 Bank of America Corporation ARM1N4G5 It would “cast in stone” spending 20110926-NEWS--0008-NAT-CCI-CD_-- 9/23/2011 3:49 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS September 26, 2011 Taxes on Live Downtown, Midtown incentives surprise some

BY NANCY KAFFER popular. So far, about 200 people versity; Live Downtown by Blue these great big ideas is more com- come, and there just isn’t a way,” CRAIN’S DETROIT BUSINESS have signed up, said Ed Potas, an- Cross Blue Shield of Michigan, DTE plicated than one might think. he said. chor strategy manager at Midtown Energy Co., Compuware Corp., Quick- The incentives, Potas said, are The group is open about the po- The Live Midtown and Live Detroit Inc., the organization that’s en Loans Inc. and Strategic Staffing considered taxable income and are tential tax liability, requiring par- Downtown programs are offering administering both programs, Solutions. taxed at the same rate as the recip- ticipants to sign a form acknowl- folks a pretty sweet deal to move to with a few more deals in the The institutions involved have ient’s regular income. edging they’d been told about the the city: $2,500 for new renters or a works. said they realize their fates are “We spent countless hours with tax situation. $20,000 forgivable loan toward a Live Midtown is funded by the tied to Detroit’s and that strength- our accountants, CPAs and legal “We want to be up front with first-time home purchase. Detroit Medical Center, Henry Ford ening the city is good for everyone. advisers to find out how we could them,” Potas said. “We don’t want And the programs have been Health System and Wayne State Uni- But as it turns out, executing do it without it being taxable in- to waste their time. … We were worried that people would see free money and panic” when they real- ized it was taxable. Exceptional Leadership. Still, he said, there’s been a bit of pushback. Delivered. “We had a couple of calls this week where I believe at one of the institutions a couple of employees said, ‘hold on, whoa,’ ” he said. “I guess it was sticker shock, or the person didn’t read the application, and we had to remind or explain it to them.” The calls, Potas said, were con- nected to one program participant. In general, he said, the incentives’ tax status hasn’t seemed to be a deal-breaker. “Your operation is standing head and shoulders above all operators in “It’s not as big of an incentive as the Detroit area” – Aviation Analyst for Fortune 500 Companies Michigan’s Premier Retained it looks like, but we’ve never really Executive Search Firm heard that from anyone,” he said. Experience, Safety and Service you can Count on. Turning down the incentive because it’s subject to taxes, he said, Locally Based. Serving All Detroit Area Airports Since 2003 would be “akin to turning down a raise because you have to pay taxes on it.” HANTZ AIR LLC That’s been the experience of real estate agent Austin Black II, International Executive Search ͹͵ͶǦͺͻ͵Ǧ͸͸ͳͳ president of City Living Detroit. Ǥ Ǥ Tel: +1.248.645.1551 • www.huntergroup.com “People I’ve worked with on Live Midtown knew going into the process that it was going to be taxable income,” he said. “They talked extensively with the Live Midtown coordinators.” Taxes on the incentives, Potas said, are pro-rated throughout the Make an Executive Decision. year at each employer’s discretion. Nancy Kaffer: (313) 446-0412, [email protected] Twitter: Choose Sommers Schwartz @nancykaffer To Protect your career and your Family Extra liquor tax for stores nears end; Decisions… decisions. Choosing the right law firm to handle your bill goes to Snyder employment law dispute can be difficult. Fortunately, we at Sommers Schwartz can make your choice much easier. LANSING – A 38-year difference Why? Simple. We offer you our vast experience with both between what stores pay to pur- business and individual cases, handle a diverse clientele, chase liquor from the state and what bars and restaurants pay resolve cases quickly, customize fee arrangements and offer could be heading toward an end. you the clout of a big law firm combined with highly The state House and Senate last personalized service. week gave final approval to Senate Bill 331, reported in Crain’s in So make an executive decision. Choose Sommers Schwartz July, which would eliminate a tax for all your employment law needs. that stores, or “off-premises” liquor licensees, must pay on their state liquor purchases effective Oct. 1, 2012. The bill was sponsored by Joe Hune, R-Hamburg. The tax, first imposed in 1973, is 1.85 percent of what the state pays for liquor plus a 65 percent markup. It is then passed along to consumers in the price of a bottle of liquor. yhd/s ^WZd/KE /^Whd^ ͻ /^Z/D/Ed/KE ͻ ,Z^^DEd ͻ KsZd/D >/D^ ͻ t,/^d>ͳ>KtZ Eliminating the tax will cost the state about an estimated $14 mil- | | lion in annual revenue. www.sommerspc.com 248-415-2234 1-888-884-3878 | 2000 Town Center, Suite 900, Southfield, MI 48075 The governor’s office said last week it had not yet made a deter- mination on the bill. — Amy Lane 20110926-NEWS--0009-NAT-CCI-CD_-- 9/23/2011 10:07 AM Page 1

September 26, 2011 CRAIN’S DETROIT BUSINESS Page 9

REPORTER’S NOTEBOOK Extra

Nancy Kaffer covers small ADDING NEW SERVICES business and Many community banks react second-stage companies and to changing market, Page 12 Detroit and Wayne County government. Call (313) 446-0412 or write nkaffer @crain.com Nancy Kaffer CFOs need more than numbers When it comes to developing the skills of financial and accounting Stay the employees, many businesses tend to improvise, said Ren Carlton, managing director of Troy-based Dynamic Advisory Solutions PC. And that’s a mistake. For the companies served by Dynamic, which offers financial services to companies with less than $50 million in sales, long-view and day-to-day accounting functions tend c urse to be compressed into one role. But as a company grows, those functions have two distinct job descriptions, Carlton said. Even double-dip recession has opportunities, money managers say “The CFO is really visionary,” Carlton said. “Really strategic — a person who gets the 50,000-foot BY TOM HENDERSON The worst thing you can do, day, the day the market en- view, not the traditional bookkeeper. CRAIN’S DETROIT BUSINESS say investment pros? Panic tered a strong and vigorous That’s more of a controller role. Look at terror as first, then sell second. bull market, regaining the loss- People try to improvise, find a he turbulent stock market is “ “When blood is in the es of the previous months. person who will fill the whole role, testing the mettle of local fi- a friend. street, it’s the best time to “They were all kicking them- but those are two different T nancial advisers and their buy,” said Peter Schwartz, selves,” said Schwartz. As for personality types.” clients. Take a registered investment ad- market lows, such as those ex- One reason business owners might “Stay the course,” wealth viser and principal in perienced in 2008, or more re- be reluctant to divide the roles — and management advisers in advantage Bloomfield Hills-based Gre- cently with huge selloffs in Au- help their financial executive team Southeast Michigan have been gory J. Schwartz & Co. Inc., gust that revived double-dip reach the next level — is fear of the adamantly telling their clients of moments paraphrasing Baron Roth- recession fears, “they’re great unknown, he said. during the past two months of of abject schild, the 19th century accumulative opportunities, “When people get comfortable with extreme market volatility. British financier who but it takes fortitude to do it,” a financial person, they really don’t There are, they say, plenty of fear. made a fortune when there he said. want to bring a different person to the good investment opportunities ” literally was blood in the Jonathan Citrin, CEO and party,” he said. out there, and the key is to streets, following the Battle of president of Sam Valenti III, Valenti Capital LLC Education can sometimes fill the avoid the natural human ten- Waterloo against Napoleon. Birmingham- gaps that would make a competent dency to panic. As a result of metaphorical based Citrin bookkeeper a top-notch controller, Even if investor fears come fund board from 1992 to 2000 blood in the streets, Schwartz Group LLC, a bou- Carlton said. true and a double-dip recession and now for individuals of high got panicked calls from five tique wealth “A lot of people in this space don’t hits the U.S. (See story, Page net worth and foundations for longtime clients on March 7 management have an accounting education 11), that won’t be a time to pan- his Bloomfield Hills-based and 8, 2008, during the midst of firm with background,” he said. “A lot of ic, either. Valenti Capital LLC. the last recession, saying they $50 million people come through ranks, start as That will be, they say, a time If the country does enter re- wanted out of the market. under manage- a bookkeeper, evolve to controller or for great buying opportunities, cession, Valenti said, Wall Monday, March 9, after one ment, doesn’t CFO. They have the ‘how,’ but they to live up to the first half of the Street panic will lead to over- last try to get them to hang foresee a double Citrin don’t have the ‘why’ behind it.” investment cliché “buy low and selling and lots of bargains. tough, he cashed them out. dip, but he does College classes, he said, can help sell high.” The mantra has “There are opportuni- “We’ve built up a lot of good see increasing volatility and ensure that the controller candidate guided revised recommenda- ties in chaos,” said J.R. will over the years by a resurgent dollar as other has the depth required to perform tions on the kinds of commodi- Hesano,managing di- telling people to stay the currencies lose favor among successfully. ties, stocks and international rector and senior in- course. But I had to fol- international investors. He The same is true of a potential investments that should be of vestor in the Grosse low their wishes,” said plans on taking advantage of CFO, Carlton said. interest in rocky times. Pointe office of J.P. Schwartz. a stronger dollar for his clients “The biggest disconnect is If a recession does hit? “Look Morgan Chase. They sold that by taking short positions on education,” he said. at terror as a friend. Take ad- those currencies. vantage of moments of abject But there’s another element in “If the world blows up, the developing a likely CFO candidate, fear,” said Sam Valenti III, who dollar is going to do really well. someone who can be strategic about has been managing money It might be counter to what the company’s fiscal future. since 1968, first for the Mas- some think, but I just love co Corp. pension fund, the dollar,” he said. “Some of it is vision, but one of then as chairman of the challenges of taking a strong He said recession the state of Michi- financial person and turning him or See Course, Page 10 her into a CFO” is seeing the big gan’s pension picture of a company, he said — and developing the people skills to communicate that vision, as the financial side of a business’s operation is traditionally drier than its creative or sales side. “If they’re not getting the full picture, the full vision of the company, a Dale Carnegie personal- skills type class — sales training, almost — can help develop interpersonal skills but also the big picture,” he said. “It’s not just about cost control.”

ISTOCKPHOTO.COM 20110926-NEWS--0010,0011-NAT-CCI-CD_-- 9/23/2011 9:59 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS September 26, 2011 Finance Extra

ADVISERS’ VIEWS Local financial advisers have varying opinions on how to advise clients during turbulent stock market times: Jonathan Citrin stocks, foreign debt, foreign currencies, European stocks and Ⅲ With: Citrin Group LLC, indexes. Birmingham Ⅲ Likes: The dollar, using it to buy Peter Schwartz short positions in a variety of foreign currencies; commodities Ⅲ With: Gregory J. Schwartz & Co. such as gold, silver, sugar, Inc., Bloomfield Hills platinum, tin and palladium; foreign Ⅲ Likes: Dividend-paying large-cap indexes. stocks for the short term, small-cap Ⅲ Dislikes: Foreign currencies stocks for the long term. Ⅲ Dislikes: Gold Naguib Shahid Jim Robinson Ⅲ With: Merrill Lynch & Co. Inc., Troy Ⅲ With: Telemus Capital Partners Ⅲ Likes: Large-cap, multinational LLC, Southfield corporations, both their stocks and Ⅲ Likes: Corporate bonds, funds their corporate debt; marine and that aggregate bank loans, real airplane financing, plots of estate investment trusts, timberland, precious metals, exchange-traded funds for large-cap including gold. stocks. Ⅲ Dislikes: Sovereign debt, small- Ⅲ Dislikes: Europe, small-cap cap stocks. stocks. J.R. Hesano Michael Dzialo Ⅲ With: J.P. Morgan Chase, Grosse Ⅲ With: Managed Assets Portfolio Pointe LLC, Rochester Ⅲ Likes: Large-cap stocks paying Ⅲ Likes: Companies that serve good dividends, commodities growing middle-class markets in indexes, agriculturals, metals and emerging markets, such as energies, Asian stocks and Wendy’s and Outback Steakhouse indexes. and DSG International plc of Ⅲ Dislikes: 10-year U.S. treasuries Thailand, which makes disposable at all-time interest lows, European diapers for Asian consumers; stocks and indexes. consumer staples, pharmaceuticals, oversold stocks John Lesser with solid assets. Ⅲ Dislikes: U.S. financial stocks Ⅲ With: Plante Moran Financial Advisors, Southfield Jeffrey Phillips Ⅲ Likes: Municipal bonds, AAA- rated corporate bonds, higher-rated Ⅲ With: Rehmann Financial, Troy junk bonds, broad-based Ⅲ Likes: Domestic large-cap, commodities indexes and health care and gold-mining stocks; commodities such as wheat, corn, gold exchange traded funds, silver, copper, gold, lumber and oil; Canadian government and emerging market debt and corporate bonds. emerging market stocks. Ⅲ Dislikes: Energy, silver, oil, Ⅲ Dislikes: Small- and mid-cap cotton, Europe with the exception stocks, European stocks and of Germany. indexes. Christopher Kostiz Sam Valenti III Ⅲ With: Advance Capital Ⅲ With: Valenti Capital LLC, Management, Southfield Bloomfield Hills Ⅲ Likes: Large-cap stocks paying Ⅲ Likes: Multinational large-cap dividends, emerging-market stocks, stocks paying good dividends, mid-caps, corporate bonds. health care, the U.S. dollar. Ⅲ Dislikes: Low-dividend large Ⅲ Dislikes: Small- and mid-cap caps, Europe.

Audit Oversight. Investor Protection. Course: No time to panic ■ At the PCAOB... From Page 9 Your role is critical. Your influence is far reaching. fears will continue to make com- Assets Portfolio LLC, a firm with modities a good play, while he’s $235 million under management The Public Company Accounting Oversight Board is looking for dynamic people been selling off individual stocks. with a $500,000 minimum for in- opportunities available to fill dynamic roles. We have throughout the United “It’s not a stock picker’s market,” vestible assets. States for experienced CPAs, Chartered Accountants and attorneys in Inspections, he said. “There are no safe-haven MAP thought enough of current Enforcement, Standards, International Affairs, and Research & Analysis. industries.” market opportunities to launch its “Don’t let your emotions dictate first two mutual funds in August, CPAs AND CHARTERED ACCOUNTANTS Minimum of 4 to 8 years of recent experience auditing public companies, depending on your activity,” said Brett Bernard, with a philosophy to be an active the position managing director of the Ohio- picker of stocks instead of another ATTORNEYS Michigan-West Virginia region for of what Dzialo calls passive index At least 10 years of progressively responsible experience with a law firm, corporation, Merrill Lynch & Co. Inc. funds. government agency or regulatory body, or combination thereof, related to accounting, “While markets are down 20 per- MAP has been an active in- public auditing or SEC financial reporting matters cent from the April highs, we vestor itself, with a philosophy of think the market will go higher, finding companies that serve Submit your resume to [email protected] not lower, the rest of the year. rapidly growing middle classes in or log on to www.pcaobus.org/careers for more details Right now, dividends from compa- emerging markets, such as QSR nies on the Dow are higher than Brands Bhd of Thailand, which the 10-year yield for U.S. Trea- owns 270 Pizza Hut restaurants in suries, which is very rare. It ar- Malaysia and Singapore and 620 gues over time for the market go- KFC outlets in Cambodia, Brunei, The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, accurate and independent audit reports. It is also charged with overseeing the audits of broker-dealer compliance reports under federal securities laws to promote ing higher, though volatility is India, Singapore and Malaysia. investor protection. The PCAOB is an equal opportunity employer dedicated to establishing a diverse workforce. here to stay.” It also has had good returns Michael Dzialo is president and CEO of Rochester-based Managed See Next Page 20110926-NEWS--0010,0011-NAT-CCI-CD_-- 9/23/2011 9:59 AM Page 2

September 26, 2011 CRAIN’S DETROIT BUSINESS Page 11 Finance Extra Cautious consensus: Slow growth, but no double-dip

BY TOM HENDERSON cans in Washington can agree on a CRAIN’S DETROIT BUSINESS fiscal policy that starts reducing unemployment. Will there be a double-dip reces- “The problems are manageable if sion? you have courage and leadership in Financial advisers in Southeast Washington, but so far they’ve been Michigan generally give a very in short supply,” he said. nervous “we don’t think so” an- If the political stalemate in Wash- swer to that question. But they do ington continues to keep unemploy- acknowledge that the prospects of ment high and investors and gov- re-entering a recession in the next ernments jittery around the world, year are stronger than they ap- Valenti predicts a recession hitting peared just a few months ago. again about next March, with a “We’re not forecasting a reces- steep market selloff of 30 percent or YOUR BUSINESS sion, but GDP both in the U.S. and more and “12 months of really hard globally will be slower than we fore- sledding.” cast a year ago, about 1 percent The good news? The fundamen- growth over the next two quarters. tals are much stronger now than But there will be extended volatili- they were when the first dip of the FUTURE IS BUILT ty,” said J.R. Hesano, managing di- recession hit, he said. There won’t rector/senior investor in the Grosse be another Lehman Bros., there Pointe office of J.P. Morgan Chase. won’t be a worldwide credit freeze “We’re concerned that the odds and both General Motors Co. and ON BORROWING have increased,” said Brett Chrysler Group LLC are in much Bernard, regional managing direc- stronger shape. tor of financial advisory services “There will be Wall Street panic, for Merrill Lynch, overseeing Michi- but no depression. There’s no ques- gan, Ohio and West Virginia. tion that once we get past this next DECISIONS YOU Bernard’s group has combined as- one, we’ll have five or six years of sets under management of more strong recovery,” he said. “A lot of than $90 billion. “Our research is wealth will be created.” pretty clear. We’re putting the Jim Robinson, CEO and chief in- MAKE RIGHT odds of it at one in three, which is a vestment officer at Southfield-based sharp increase from where we Telemus Capital Partners LLC, which were 90 days ago.” has $1.8 billion under management, “We think we’ll avoid a double thinks a second recession will be dip, although we’re certainly in a averted. During the first recession, ABOUT…NOW. lower growth environment,” said Telemus went to a 45 percent cash John Lesser, president of Plante position, considering cash as an as- Moran Financial Advisors. set class. He doesn’t anticipate any “The indicators aren’t pretty, but upcoming need to move to cash this I don’t think we’re going to have a time. double dip,” said Jonathan Citrin, “The market will be volatile for a CEO and president of Birmingham- while, at least until we get clarity based Citrin Group LLC, a boutique out of Europe,” he said. wealth management firm with If a recession does hit, don’t pan- As a business owner, you face tough decisions every day. $50 million under management. ic, look for bargains, he said. Clients typically have at least “They say you don’t throw the Like deciding if and when you should borrow. A Huntington $1 million in investible income. baby out with the bathwater, but Sam Valenti III, chairman and there will be a lot of babies out Business Banker can help. CEO of Bloomfield Hills-based there,” he said. Valenti Capital LLC, is less sanguine. Tom Henderson: (313) 446-0337, He thinks a recession can be avoid- [email protected]. Twitter: ed only if Democrats and Republi- @tomhenderson2 Now is the time to reach out. At Huntington Business Banking, we take the time to understand your speciﬁ c

From Previous Page bit. They don’t want to be hit on business needs and help you make borrowing decisions from its investment in DSG Interna- the downside.” tional plc of Thailand, which makes “The return of the investment is that are right for you. In 2010, we committed to lending disposable diapers for Asian mar- more important for our clients kets. than the return on the invest- $4 billion to local businesses over a three-year period, Overseas growth balances out ment,” said John Lesser, president low growth here. “I don’t know if of Southfield-based Plante Moran Fi- so if you decide you’re ready, we’ll be there to support we’ll have a double-dip recession, nancial Advisors. That means a very you every step of the way. It’s what you’d expect from but it’s a no-growth environment. conservative investment strategy We’re just going to be bumping for his clients, who have $1 million the #1 SBA lender.1 along here,” said Dzialo. or more in investible assets, which Christopher Kostiz, the CEO Lesser says can still be accom- and chief investment officer at plished in a volatile market. Southfield-based Advance Capital Or as Jim Robinson, CEO and To learn more or speak with a Business Banker, stop by Management, which has about chief investment officer at South- $1.9 billion under management, field-based Telemus Capital Partners your local Huntington branch, visit huntington.com/borrow said he routinely talks panicked LLC, which has $1.8 billion under clients off the ledge these days by management, said: “We view our or call 1-866-808-8913. trying to give them the big picture. mandate as a keep-rich business, “If you go back to 1900, markets not a get-rich business,” he said. are down by 5 percent three times a “Our customers come to us rich, year on average, and down once a and they want to stay that way.” year by 10 percent,” he said. “Earn- And, say the local advisers, ings are good, price-to-earnings ra- they’ve got a better chance of stay- 1Huntington is the #1 SBA 7(a) lender in the region made up of Indiana, Kentucky, Ohio, Michigan, West Virginia tios are good. It’s not all dire.” ing rich by not selling when the and Western PA. Source: U.S. SBA from October 1, 2007, through June 30, 2011. The key, he said, is to be conser- times get tough. Member FDIC. B® and Huntington® are federally registered service marks of Huntington Bancshares vative. “We know what our clients’ Tom Henderson: (313) 446-0337, Incorporated. Huntington.® Welcome.TM is a service mark of Huntington Bancshares Incorporated. risk tolerance is. They won’t be too [email protected]. Twitter: ©2011 Huntington Bancshares Incorporated. mad if we miss out on the upside a @tomhenderson2 20110926-NEWS--0012-NAT-CCI-CD_-- 9/23/2011 10:01 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS September 26, 2011 Finance Extra Market changes for community banks; many add wealth management services

BY TOM HENDERSON Huron and First Banking Center of about continuing what has worked CRAIN’S DETROIT BUSINESS Wisconsin all offered such services. for him at other community banks The acquisitions allowed the in the past. More community banks have be- bank to have $316 million in assets “This can be a lucrative part of gun adding wealth management under management far cheaper banking,” he said. operations as they diversify their than if it had to build up the busi- Bedell was a financial adviser un- revenue streams and reduce re- ness from scratch, said David der Broucek first at Citizens Trust liance on small-business and com- Provost, Talmer’s president and Bank and then at Bank of Ann Arbor, mercial real estate lending. CEO. another community bank Broucek “The way it was done for years Provost said wealth manage- co-founded, in 1996. Broucek retired no longer works,” said Patrick Mc- ment diversifies his revenue but is from Bank of Ann Arbor in 2005, got Queen, state banking commission- more important as an add-on ser- bored in retirement and founded er from 1993 to vice to existing customers. Ann Arbor State Bank in 2009. ‘99 and now a “It’s not going to drive your bot- The trust and investment man- managing direc- tom line very much. The point is to agement group that Broucek start- Continuity tor for the bank- make a little profit. You need it to ed at Bank of Ann Arbor now has Trusted for 70 years. We’ll be here for generations. ing practice for be a full-service bank,” he said. 18 advisers and about $700 million Southfield-based Provost said Talmer has a under managment, according to turnaround firm $1 million minimum for a fully president and CEO Tim Marshall. BBK Ltd. We work with our clients and their advisors to: managed trust account but avoids The group has an investment advi- “Community minimums for other financial ad- sory arm, which handles accounts Reduce estate and income tax Enhance fixed income banks were visory services. as small as $25,000, and a wealth formed to do “I had one customer tell me that management arm that handles ac- yields Solve family and business issues Improve McQueen commercial real a friend of his had inherited more counts from $500,000 to $75 million. existing life insurance policies. estate lending,” he said. “With that money than she ever imagined and “It’s been a great growth area no longer on the table, how will was in need of management. for us. We’ve had exceptional those that have survived be suc- ‘Would I see her?’ ‘Sure.’ So she growth,” said Marshall, who says a cessful in the future? By being re- came in. It turned out her mother major reason for that is large na- sourceful. They’ll need to find more died and left her $13,000. You don’t tional and regional banks have in- non-interest income, whether it’s make much on a $13,000 account, creased their minimums on selling retirement services or pro- but you need to do it as a commu- wealth management accounts in viding wealth management.” nity bank. Now she’s a customer.” recent years. BIRMINGHAM, MICHIGAN 248.731.9500 “Community banks are trying to Provost said one thing helping “What might have been a mini- WWW.SCHECHTERWEALTH.COM diversify their income and provide community banks expand their fi- mum of $500,000 several years ago more services to customers,” said nancial services is investor atti- might be $5 million now. They’re Dennis Koons, president and CEO tude. told that if they don’t have a high- of the Lansing-based Michigan “In the go-go days of the late er minimum, they don’t get to talk Bankers Association. “A substantial 1990s, no one wanted to talk to a to a personal adviser, they have to number of banks are getting into community banker for investment call a call center. So they’re com- investment services.” advice. We were too conservative. ing to us,” he said. The association even helps very We were recommending bond Mike Ross — president and CEO small community banks in the state funds and conservative stocks, and of Dearborn-based Fidelity Bank, offer investment advisory services people wanted the sizzle,” he said. which seems to have turned a cor- through a Vermont-based firm, In- In July, Ann Arbor State Bank an- ner with two straight quarters in finex Investments LLC. Infinex was nounced it had formed a new divi- the black — said he doesn’t think formed by East Coast bankers who sion, First Arbor Advisors, to be run the cost and time needed to grow a wanted to offer wealth management by Bernard Bedell, who has 32 meaningful portfolio of wealth but couldn’t afford individual back- years of wealth-management expe- management business is worth it. office operations and their own ad- rience. It will target customers “We’re going to stick to the ba- visory and trust departments. with at least $100,000 to invest. sics. We’ll keep giving good advice “You’re going to see even more For William Broucek, chairman on our conventional products,” he community banks doing this,” and CEO of Ann Arbor Bancorp, the said. said Infinex President and CEO bank’s holding company, adding a Tom Henderson: (313) 446-0337, Steve Amarante. “There’s been a wealth management division was- [email protected]. Twitter: whirlwind of opportunity for us as n’t about a trend as much as it was @tomhenderson2 On the Job in banks look for ways to augment their lost income.” Lansing So You The Bank of Michigan of Farming- ton Hills has been offering financial advisory services through a fee Can Keep arrangement with Wells Fargo. But President and CEO Mike Sarafa Doing Yours said he has begun talking to local financial managers who have a sub- As Michigan’s leading statewide business stantial book of business they could bring to his bank about launching a advocacy organization, the Michigan wealth management operation. Chamber is getting the job done to pass “It’s absolutely a needed thing, and you’ll see a lot more of it,” said bold tax reform, cut red tape and create Sarafa, who said bank consolida- Business Advocacy an atmosphere that helps Michigan tions and brokerage mergers have Political Action businesses grow. created a pool of potential wealth managers to pick from. Member Services Sarafa said the bank, which is Join the Michigan Chamber of Commerce 51 percent owned by the struggling and help reinvent Michigan. Call (517) Capitol Bancorp Inc. of Lansing, is re- 371-2100 or visit www.michamber.com capitalizing, “and then we’re going to get into a growth mode and move into wealth management,” he said. Talmer Bank got into the trust and Leading Businesses. Moving Michigan Forward. wealth management business Local: (517) 371-2100, Toll Free (800) 748-0266 through the acquisition of three www.michamber.com banks shut down by federal regula- tors — Community Central Bank of Mt. Clemens, Citizens First of Port 20110926-NEWS--0013-NAT-CCI-CD_-- 9/23/2011 11:42 AM Page 1

September 26, 2011 CRAIN’S DETROIT BUSINESS Page 13

CRAIN'S LIST: LARGEST MONEY MANAGERS Ranked by assets under management Assets under Assets under management management Minimum Company with discretion with discretion Total amount of client size for Address ($000,000) ($000,000) Percent tax-exemption collective Rank Website Client contact Jan. 2011 Jan. 2010 change portfolio Jan. 2011 /individual Advisory activities Comerica Asset Management Group B Dennis Johnson $25,068.5 $26,418.6 -5.1% NA NA Financial planning, portfolio management for individuals and/or small 255 E. Brown, Birmingham 48009 (248) 594-4138 businesses, portfolio management for investment companies, portfolio 1. www.comerica.com management for businesses or institutional clients, selection of other advisers Munder Capital Management Inc. Sharon Fayolle 14,290.0 15,585.0 -8.3 6,074.0 NA Portfolio management for individuals and/or small businesses, portfolio 2. 480 Pierce St., Birmingham 48009 (248) 647-9200 management for investment companies, portfolio management for www.munder.com businesses or institutional clients Plante Moran Financial Advisors LLC John Lesser 3,290.4 2,683.1 22.6 NA NA Financial planning services; portfolio management for individuals and/or 3. 27400 Northwestern Highway, Southfield 48034 (248) 352-2500 small businesses, businesses or institutional clients www.pmfa.com Seizert Capital Partners LLC John Van Gorder 2,151.9 C 1,516.5 C 41.9 NA NA Portfolio management for individuals and/or small businesses, 4. 185 Oakland Ave., Suite 100, Birmingham 48009 (248) 593-1500 investment companies and businesses or institutional clients www.seizertcapital.com Telemus Capital Partners LLC Rachelle Zawinsky 1,875.3 1,703.7 10.1 208.1 NA Portfolio management for individuals and/or small businesses, 5. 2 Towne Square, Suite 800, Southfield 48076 (248) 827-0126 1,000,000 businesses or institutional clients; pension consulting services and www.telemuscapital.com selection of other advisers NorthPointe Capital LLC Ken Kosiorek 1,358.3 1,209.8 12.3 1,137.1 NA Portfolio management for individuals and/or small businesses, 6. 101 W. Big Beaver Road, Suite 745, Troy 48084 (248) 457-1594 investment companies and businesses or institutional clients; other www.northpointecapital.com Sigma Planning Corp. Jerry Rydell 1,270.7 D 761.0 D 67.0 NA NA Financial planning services; portfolio management for individuals and/or 7. 4261 Park Road, Ann Arbor 48103 (734) 663-1611 small businesses and businesses or institutional clients; selection of www.sigmafinancial.com other advisers; other Advance Capital Management Inc. Joe Theisen 1,232.9 1,016.7 21.3 NA NA Financial planning services; portfolio management for individuals and/or 8. 1 Towne Square, Suite 444, Southfield 48076 (800) 345-4783 small businesses, investment companies and businesses or institutional www.advancecapitalonline.com clients LS Investment Advisors LLC William Camp 1,065.6 1,019.3 4.5 478.0 NA Portfolio management for individuals and/or small businesses and 9. 39533 Woodward Ave., Suite 302, Bloomfield Hills 48304 (248) 430-0262 1,000,000 businesses or institutional clients www.LSInvestmentAdvisors.com Mainstay Capital Management LLC David Kudla 1,022.7 786.6 30.0 NA 200,000 Financial planning services; portfolio management for individuals and/or 10. 100 E. Big Beaver Road, Troy 48083 (866) 444-6246 200,000 small businesses www.mainstaycapital.com

This list is a compilation of the largest money managers in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Assets under management with discretion exclude master trusts, directed trusts, options, custodial assets and advisory accounts over which no direct investment responsibility exists. Information was provided by the companies or from form ADV, which is used to register an investment adviser with the U.S. Securities and Exchange Commission. It is not a complete listing but the most comprehensive available. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. NA = not available B In September 2009, Comerica realigned its three asset management units — Comerica Asset Management, World Asset Management and Wilson Kemp & Associates — under one group to form Comerica Asset Management Group. C Figures from Forms ADV filed August 2011 and March 2010. D Figures from Forms ADV filed March 2011 and February 2010. LIST RESEARCHED BY BRIANNA REILLY

THE LEUKEMIA & LYMPHOMA SOCIETY 800-292-3831 CONGRATULATES ITS NATIONAL indiantrails.com WOMAN OF THE YEAR

Making an impact in the ﬁght against cancer

ONE HU G ND IN R T E A D R Y B E

E A

L R

E S C 100

Kelley LaFontaine, LaFontaine Automotive Group with Honored Patient, Jackson Moceri Comfort and t$IBSUFST Luxury The Leukemia & Lymphoma Society congratulates this year’s winners and all of the candidates who competed for the title. Your efforts and commitment to ﬁnding cures for blood cancers t5PVST have brought help and hope to thousands of patients and their loved ones. t4IVUUMFT $10000 For more information or to get involved, please visit t$POWFOUJPO4FSWJDFT SAVE OFF www.mwoy.org or call 888.HELP.LLS t$PSQPSBUF&WFOUT Contact Indian Trails for details. Must use this t4DIFEVMFE4FSWJDF promotional code at time of booking: 2011CDB-SEP 20110926-NEWS--0014-NAT-CCI-CD_-- 9/23/2011 11:43 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS September 26, 2011 Washtenaw nonprofits pool, focus grants to increase impact

BY SHERRI WELCH the Ann Arbor Area Community Foun- vestment and the impact the can make a much bigger impact on health that funders were seeking CRAIN’S DETROIT BUSINESS dation and the Office of Community grants are having, while stream- the areas of greatest need in our and could not apply for grants, said and Economic Development, repre- lining application and reporting community by working together Jackson, who led the review. Major public and private fun- senting Ann Arbor, Washtenaw procedures for grantees. instead of each acting as an inde- Of the total number vetted, 19 ders in Washtenaw County are County and urban Washtenaw Grant-makers say it will allow pendent funding entity,” said Neel were operating with negative re- pooling the majority of their hu- County, are combining nearly them to better identify gaps in fund- Hajra, COO and vice president of serves, she said. man services grants in six com- $5 million in funding for human ing and to have more collective im- community investment for the “The process has helped us have mon priority areas and collaborat- services through the Washtenaw pact during the pilot, which focuses Ann Arbor Area Community a better awareness of the health ing on grants made to nonprofits Coordinated Funders initiative. on six areas: safety-net health, Foundation. overall of the nonprofit sector in working in each. The two-year pilot program hunger relief, housing and home- “We could not find a model any- our whole county,” Jackson said. United Way of Washtenaw County, aims to maximize each funder’s in- lessness, aging, early childhood where that combined these three In December, the collaborative and school-age youth. types of partners — a community expects to award $225,000 in capac- The first five areas mirror those foundation, a United Way and a ity-building grants to improve op- that United Way of Washtenaw public entity. This triad of funders erations and governance. made its focus areas in 2008. makes this unusual.” The history of public funding There’s value The collaboration in January from Washtenaw County and the to knowing awarded $310,000 in grants to six city of Ann Arbor has been of what the other nonprofits that will convene their grantees getting reimbursed quar- funders are peers in the focus areas to share terly, Hajra said, which could lead FULL SERVICE ASSEMBLY funding while best practices. to cash flow issues for grantees. they are funding For example, Ann Arbor-based With the Washtenaw Coordinat- TOOLING SYSTEMS it “so that we’re Blueprint for Aging regularly con- ed Funders, that has changed to a not overinvest- venes on those issues, Hajra said. disbursement model for general ing or underin- The funders are providing sup- fund dollars from the city and vesting,” said port to Blueprint to continue to county and community develop- CONTINGENT WORKFORCE Debbie Jackson, Jackson convene nonprofits providing ser- ment block grant funding from the director of com- vices for the aging to identify best urban Washtenaw county group of munity investment at United Way practices, gaps in services and local townships and cities. SERVICES of Washtenaw. where there is opportunity for col- “Instead of nonprofits having to The public and private funders laboration. ask for reimbursement, they get are investing a combined $4.94 mil- In July, the funders jointly an- the money at the beginning of each lion in three phases of grants to nounced $4.4 million in grants quarter,” a policy that drew ap- support a lead convening agency over the next two years to 40 plause from about 40 grantees who in each area, capacity-building Washtenaw nonprofits to fund 63 gathered recent- 29401 Stephenson Highway and program services. The Office programs in the six focus areas, ly for a meeting of Community and Economic De- following an initial vetting of non- with the fun- Madison Heights, MI 48071 velopment is contributing $2.6 mil- profits seeking grants and a subse- ders, Hajra said. 248 548 6010 lion; United Way, $2.08 million; quent grant proposal process. That is a good and the Ann Arbor Area Commu- The initial vetting found that sev- example of why www.gonzalez-group.com nity Foundation, $250,000. en of the 58 nonprofits seeking fund- the collabora- “The big-picture idea here is we ing lacked the governance or fiscal tion is working, said Mary Jo Callan, director of the Office of Community and Callan Economic Development. A reimbursement model is stan- dard for public entities, she said. Feedback from the private funders and nonprofits providing it to the collaboration “really helped us to understand that reimbursement versus advancing funds is a hard- ship for nonprofits. “Part of the premise of this (coordinated funding) model really is that if … we can show the public sector is really working with the private sector to … meet community needs in a more effective way, it You Deserve to See All of Your Commercial Real Estate Options may draw forward more resources … from private, corporate and foundations,” Callan said. “We want our community at large to see we’re doing a lot with their tax dollars and their donated dollars.” The Washtenaw Coordinated Funders awarded Catholic Social Services of Washtenaw County $606,647 in grants for programs in four of its six focus areas. The Ann Arbor nonprofit no- ticed right away a single application for multiple funders, saving it Real Estate Strategy time, paper and creating multiple files for each of the separate fun- Tenant Representation ders, said President Larry Voight. Nonprofits are going to feel dif- Buyer Representation ferently about the coordinated funding depending on how their Project Feasibility services align with it, he said. “An intangible benefit is there’s Before you make a move, let us uncover every commercial Construction Oversight a sharper focus from the perspec- real estate option. As an unbiased, tenant representative, tive of the funders in terms of is- Incentives sues that are worthy of financial we bring more thought per square foot. support at this time in the commu- Lease Administration nity.” pmcresa.com 248.223.3500 Sherri Welch: (313) 446-1694, [email protected]. Twitter: @sherriwelch 20110926-NEWS--0015-NAT-CCI-CD_-- 9/23/2011 10:10 AM Page 1

September 26, 2011 CRAIN’S DETROIT BUSINESS Page 15

A CONVERSATION WITH WEB EXTRA Crain’s list: Largest meeting facilities, crainsdetroit.com/lists Latisha Johnson, Prestige Meetings & Events LLC meetings and conventions

Latisha Johnson, 36, is co- founder of Prestige Meetings & Events LLC, a new Detroit-based company that is planning meetings and corporate events in metro Detroit. After working in the sales department for the Detroit Marriott Renaissance Center and previously Cobo rising in sales for the Detroit Metro Convention & Visitors Bureau, Johnson and her business partner, Joyce Thomas, formed Prestige Reconstruction, end to corruption, Meetings & Events. She spoke with Senior Reporter Dan Duggan about the hospitality industry and new leaders form focus of ad campaign Prestige. BY DANIEL DUGGAN Corporate travel and out-of-town AND CONSTANCE CRUMP meetings remain a slow industry, CRAIN’S DETROIT BUSINESS nationally. What led you to the decision to start an events business he people marketing Cobo Center want at the beginning of 2011? The the nation to see their “to-do” list. tourism industry always tends to T And at the top of it — crossed out — is be the first to decline and the last the task: “Root out corruption.” to rebound. But with the economy That image is part of a new advertising where it has been, there were a lot campaign to send the message that Cobo has of people planning the meetings been reformed, said Chris Baum, senior vice and events for companies and president of sales and marketing for the De- associations, in-house, who may troit Metro Convention & Visitors Bureau, which have been laid off. designed the ads. I see this as an enormous “This is what everyone out there across the opportunity to assist companies country is saying about us anyway, so we need and associations to fill that void to get in their face and address it,” Baum said. and help them do it without “We are willing to acknowl- needing to hire a full-time edge that we had a problem, employee. but we’ve addressed it, and How has business been? I’m it’s not something you’re go- currently meeting with three ing to find at Cobo Center in national conventions that will be the future.” having events in town in the next The ads, to run in national three to five years. I’d be helping meeting and convention them with their local events, magazines, show a Cobo looking into transportation and checklist and the corruption item crossed out, along with logistics and handling other Baum GLENN TRIEST services. other items checked off such Thom Connors, Cobo’s general manager since November, is overseeing changes to the convention center I’ve also done work for a local as “Negotiate flexible work rules” and “Shift and the way it does business. corporation, and I’m working on its ownership to a regional authority.” national training conference in New “Attract new customers” isn’t crossed off, West Conshohocken, Pa.-based SMG was ap- For 2010, the authority reduced expenses by Orleans. and the ad asks for “a little help” with that one. pointed at the end of 2010 to handle day-to-day $6 million and increased revenue by $1.5 mil- I’ve been spending a lot of time The bureau created the ads for Cobo as part of management of the facility, and new ways of lion, according to Alexander. networking, and I’m optimistic a closer relationship it now has with the Detroit doing business have been put into motion. The center is in the middle of a major reno- that, lately, I’ve gone to some Regional Convention Authority, the regional body Thom Connors, a regional vice president vation, as well, with a $200 million upgrade in networking meetings and had that now owns and operates Cobo. with SMG, became general manager of Cobo the works. people say “Oh, I heard about While Larry Alexander is both president and in November. The changes are meant to spark new life for you.” CEO of the bureau and chairman of the conven- A new labor agreement is expected to roll the convention center, which has an abysmal tion authority board, the overall changes are out in coming weeks that could reduce the reputation. In recent years, the rumor mill What is the overall industry part of the overhaul given to Cobo over the past costs for customers. The changes come after worked overtime on the possibility that the looking like? We’re seeing more three years and ongoing work to improve ser- many of the past vendor contracts have been North American International Auto Show would bolt. meetings planned now than there vice and clean up operating procedures. renegotiated, including the entire food service It’s all part of rebuilding and rebranding a were in the past few years. It’s operation. convention center marked with a history of enough to make me optimistic. Cobo’s 2010 revenue was $4 million, with to- mismanagement, corruption and waste. But we’re also seeing the Rebuilding and rebranding tal expenses of $20 million. The city of Detroit In particular, several well-publicized indict- meetings that are occurring seem Changes in the way Cobo is run have come covered Cobo’s budget shortfalls before 2009; ments in the past few years exposed past busi- to be smaller. It has a lot to do fast and furious since the creation of the au- state funds have filled the gap since then due to with the economy, but each legislation on Cobo’s new operating authority. See Cobo, Page 16 association or corporation makes thority in September 2009. its own decisions. Groups that are doing meetings are trying to do them on a smaller scale, they don’t want to pay as much out of pocket. So, you have $200M Cobo growth spurt under way fewer people, smaller meetings. Exhibit space in Cobo Center will expand by views. A three-story atrium will link to a new troit FanFare Comic Book Convention, held last What kind of short-term goals do North American Interna- you have? I dedicated the first full 20,000 square feet by the entrance, also facing the river. week, and a 2012 Japanese anime convention. year to marketing. But by the tional Auto Show in January, but the biggest The city side will display a digital sign, glass “We’re seeing a renewed interest from the beginning of next year, I’m hoping physical changes are just getting started. exterior walls and access to a new food court. corporate sector,” said Thom Connors, Cobo that we will be in the financial Exhibit halls now boast energy-efficient Meeting rooms will be reconfigured. general manager. “GM is doing a Chevy event at position to hire someone part lighting. New parking and upgraded loading How much for the face lift? The budget for the end of the month, and we are one of two time. The way things are looking docks will be completed by year’s end. this phase tops $200 million. stops on a BASF tour. BASF picked Detroit be- now, I may be able to hire a full- And construction starts soon on a larger It might be paying off: Bookings are on the up- cause of the good things happening and the con- time meeting planner next year. Cobo overhaul. Cobo Arena will be replaced by swing, after years of underperforming the in- venience of our location between Chicago and a 40,000-square-foot ballroom with a glass wall, dustry in days of use and number of shows Toronto.” open-air terrace and panoramic riverfront booked. Two new public shows include the De- — Constance Crump 20110926-NEWS--0016-NAT-CCI-CD_-- 9/23/2011 10:02 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS September 26, 2011 Focus: Meetings and Conventions Cobo: New selling points ■ From Page 15 ness practices of kickbacks for ing with Freeman.” contractors doing work at Cobo. Detroit is never going to com- Glenn Blanton, who ran Cobo pete with the largest venues — Las Center from 2004 to 2007 under Vegas, Orlando, New York, Baum- then-Mayor Kwame Kilpatrick, re- gart said. Still, he expects that ceived a one-year jail sentence in within the next few years and un- 2009 after admitting he took a der Connors’ leadership, Cobo will $15,000 bribe from Cobo contractor rank right behind those facilities. Karl Kado, who also pleaded guilty. “People didn’t want to come News continues to come out. here — exhibitors, show man- During a Sept. 12 plea agree- agers. Now we’re finding that asso- ment, former Kilpatrick aide Der- ciations will give us a chance. rick Miller admitted to receiving a Everybody’s accountable now.” bribe meant to help Kado keep his Costs are expected to come down Cobo contract. with the new labor contracts, but But Connors said with cleaned- show managers say they haven’t up operating procedures — and a budged yet. renewed emphasis on customer Still, John Ropp, president and service, Cobo’s outlook is brighter. CEO of the Michigan Boating Indus- Cobo hosted 19 conventions or tries Association in Livonia, said he’s trade shows in 2010, with $101 mil- happier with the service. lion in estimated spending in metro “In the past, exhibiting at Cobo Detroit by exhibitors and attendees. was difficult and costly. Our experience this year was completely the opposite,” said Ropp. “Since Labor negotiations coming SMG and Thom took over, cus- Labor rules changes are expect- tomer service stepped up substan- ed to boost business further. tially. The (2011 boat) show cost Work rules that limit how much about the same as the previous exhibitors can do, versus work year. Wages aren’t going down. that must be contracted to expen- But they are willing to work with sive union workers, are expected us and we received additional ser- to be modified in the next few vices at no cost.” weeks. The issue affects all trade Stamford Conn.-based Center- show venues, not just Cobo. plate Inc., the new catering suppli- “We’re working on finalizing er, comped food for a party hosted our updated efficiency agree- by the boat show, Ropp said. Cen- ments. We’ve made significant terplate is also scoring points for progress,” Connors said. quality and selection from meeting “The labor unions are our busi- planners. ness partners; they’re at the table with us along with the contractors they work for. Concepts have been Selling the changes broadly discussed: new rules, new Putting Detroit’s best face for- approach, new attitude.” ward in the new marketing and ad- “The next couple years are go- vertising are the first step in selling to be challenging to get ing these kinds of changes. The through the reconstruction phas- convention bureau ad campaigns es. But knowing there’s light at the are set to launch across the coun- end of the tunnel is encouraging,” try next month, touting Cobo Cen- said Heidi Borter, senior event ter and the metro Detroit region. 2011 Michigan planner for the Pittsburgh-based Addressing Cobo’s past image Society of Automotive Engineers. She of corruption and waste head-on is oversees the annual SAE World a smart move that will get atten- Congress held in April at Cobo. tion, said Tim Smith, president, Tax Conference “It’s just not a depressing place CEO and owner of the Skidmore Stu- anymore. It’s more energetic and dio advertising firm. Tuesday, November 8 - Thursday, November 10, 2011 | Suburban Collection Showplace | Novi upbeat — even the staff that has “It’s a brilliant way to get peo- been there a long time. They have ple’s attention, to make them stop, become refreshed, and they’re even giggle a little, but remember Tax Policy in Michigan with proud of the changes.” it,” he said. “And from there, you Lt. Governor Brian Calley (invited) can start to change the perception.” A value proposition Along with the Cobo ads, Baum 31 Subjects Delving into the Latest is continuing a series of “Detroit Detroit is being considered a val- 3.0” advertisements. Tax Changes in Michigan and the Midwest ue alternative to Chicago right now, The recent round of ads has a said Carla Connor-Penzabene, di- large picture of James Ellison, ex- “Speakers seem to get better Designed for all CPAs, Attorneys rector of sales for the Detroit Metro ecutive director of the Great Lakes and Tax Professionals Convention & Visitors Bureau. Stem Cell Innovation Center in De- and better every year!” When trade show managers com- troit’s TechTown, touting Michigan – 2010 Attendee pare hotel rates and the cost of ex- as having more clinical trials un- Up to 21 Hours of CPE Including hibiting at Chicago’s McCormick der way than any other state, mak- Accounting & Auditing and Ethics Sessions Place versus Cobo, Detroit wins, ing it the ideal location for the she said. Also appealing is Delta Air- World Stem Cell Summit. lines’ schedule of one-hour nonstop It’s paired with the tagline “De- NEW! Optional Pre-Conference Workshop flights from New York, Washington troit: Manufacturing genius since Designed for New CPAs, Young Associates, and Chicago, she said. 1913” — the year Henry Ford Legislators and Anyone Needing a The new and improving Cobo adopted the assembly line. Primer in Taxes Center is also part of the sell now, Baum said the goal is to show off said Bob Baumgart, general man- not just the expertise that can be ager of the Detroit office of Dallas- found in Detroit, but to show that based Freeman, a global exhibit ser- there is a strong research and en- vices company. gineering base in the region. in partnership with “Honestly, the facility improve- “It’s an idea that we have a lot of ments are helping the whole city, brainpower here, not just cars,” he plus the PR going out (saying) said. things are improving,” Baumgart Daniel Duggan: (313) 446-0414, Learn more at www.michcpa.org/MTC or call 248.267.3700 said. “It’s been a 100 percent turn- [email protected]. Twitter: around as far as (Cobo) people work- @d_duggan 20110926-NEWS--0017-NAT-CCI-CD_-- 9/23/2011 10:03 AM Page 1

September 26, 2011 CRAIN’S DETROIT BUSINESS Page 17 Job search becomes springboard for new company

BY SHERRI WELCH penses were as much as $10,000 a the functionality of the largest sive level of service and offering preneurs Inc., who said her compa- CRAIN’S DETROIT BUSINESS month for about 110 job postings. sites with the comprehensive post- month-to-month rather than long- ny has been able to cut posting As she searched for a job using ings of the aggregation sites. And term contracts, Hogan said. costs in many cases. Christina Hogan’s plight was those sites, which offered features the price should be affordable. Wohler, who co-owns the compa- One of the issues with general- typical of many executives when and online tools for things like cor- With that thought, the idea for ny with Hogan, said it expects to ized job boards is the high number the economy collapsed. porate branding of postings her new company was born. hit about $500,000 in revenue by of unqualified respondents an- She lost her job as vice president through font and colors, and other She and Wohler spent the next 11 the end of its first year and several swering postings, Byndas said. of marketing for national health sites that aggregated every type of months developing Career million by the end of 2012 once it Hogan “is doing a very good job care staffing company Crdentia job from every online resource, Vitals.com with a health care niche. launches 15 sub-niche job posting drawing in the right type of peo- Corp. in November 2008. Two such as www.indeed.com and As of early September, the site boards for specific jobs such as ple,” she said. months later, her husband was www.simplyhired.com, she began was attracting an average of 2,000 nurses, physicians and therapists. CareerVitals.com now is plan- laid off from Warren-based Camp- to make a mental list of the pros to 3,000 unique daily visitors and Posting jobs on the website ning its next vertical job board — bell-Ewald Co. and cons of each site. more than 45,000 per month, most- brings exposure on other online this one for the automotive indus- “It was ab- She decided the search process ly job seekers, from around the sites because CareerVitals.com au- try, Wohler said. solutely devas- would be simpler if job-seekers country, Wohler said. tomatically re-posts its jobs else- Sherri Welch: (313) 446-1694, tating. … We did could look at just the jobs in their CareerVitals.com is charging where, said Charlotte Byndas, [email protected]. Twitter: @sher- not expect a dou- industry in a site that combined $500 per month for the most expen- COO of Wixom-based Search Entre- riwelch ble layoff … and … I had a new baby,” Hogan, 34, said. As she searched for an- Hogan other position, an idea began to germinate: a high-functioning industry-based job search site. A LOAN WITH After she mentioned the idea to Greg Wohler, president and CEO of Ferndale-based Edge Creative Group, he offered her business expertise, the use of his offices and support of his staff to develop her idea. Hogan had worked with Wohler for a national branding project while she was at Crdentia. With his help, Hogan launched a health care job board company, CareerVitals LLC, in May. There are many businesspeople who are jobless or underemployed A CITIZENS BANK LOAN LETS YOU FOCUS ON THE FUTURE ... but “have great ideas that could because the businesses help their personal situation and that will succeed tomorrow are the ones that make the right choices today. They are spur the local economy,” Wohler said. led by individuals who see opportunity for growth and expansion, and take action with After working with Hogan, Wohler partnered with former In- complete conﬁdence. A loan from Citizens Bank will keep you moving forward and star Services Group CEO Mark never wondering, “What could have been?” Davis and a third, silent partner to launch Tree[1]Three LLC to provide resources — accounting, marketing, technology, business support Get the loan you deserve now. To make an appointment with a Citizens Banker, call and funding with local partners — 800-946-2264 or visit CITIZENSBANKING.COM/BUSINESS. to back startup ideas in exchange for a share of the companies. Tree[1]Three is working with another undisclosed startup and developing an idea of its own, GoAuto LLC, which will connect approved customers with available inventories of used vehicles. The company is not a traditional business incubator, taking on an existing business and trying to grow it, he said. “We are an idea development company ... examining an idea then working with the person who came up with that idea for a year to determine viability.” Before losing her job at Crdentia, Hogan had worked for the University of Michigan, Blue Cross Blue Shield of Michigan and Campbell-Ewald as a computer systems business analyst before being promoted at the latter to digital project manager. In that job, she led digital marketing and website projects for clients that included Kaiser Permanente, General Motors, its Chevrolet brand and the Navy. Within another year, she was promoted to supervisor of all digital project management. EPrize LLC recruited her in early 2006, and she served as manager of the mycokerewards.com program before joining Crdentia in July 2006. Crdentia used sites like Career builder.com and Monster.com to post jobs, and Hogan said company ex- 20110926-NEWS--0018-NAT-CCI-CD_-- 9/23/2011 10:05 AM Page 1

Page 18 CRAIN’S DETROIT BUSINESS September 26, 2011 BUSINESS DIARY

ACQUISITIONS Pointe Farms, signed an agreement NEW SERVICES with LumenOptix LLC, Mont- Red Level Networks, Novi, an infor- , gomeryville, Pa., to become a pre- Harrington Communications LLC mation-technology services provider, ferred distributor of LumenOptix’s Grosse Pointe Woods, a communica- acquired the technical services divi- tions and design firm, launched a new sion of fluorescent high bay fixtures. Preferred Solutions, website for Integrated Capital Man- Northville, a staffing, training and in- Ilumisys Inc., Troy, a developer and , Bloomfield Hills. Web- formation-technology support ser- producer of solid-state lighting tech- agement LLC vices company. This agreement al- nology, and a subsidiary of Altair Engi- site: www.icapitalmgt.com. lows Red Level Networks to acquire 40 neering Inc., Troy, announced that clients from Preferred Solutions. LEDdynamics Inc., Randolph, Vt., is STARTUPS Aerodynamics Inc., Waterford Town- now a licensee of its products. Daniel D. Mashni DDS PLLC, dba All ship, a flight and maintenance repair Capital Letters LLC, Ann Arbor, has Smiles, a general, family and cosmetic firm, and its subsidiary, ADI Shuttle been selected by the Grunwell-Cashero dentistry practice, at 721 Chestnut, Group LLC, has been acquired by Scott Co., Detroit, to handle its corporate Suite 103, Birmingham. Telephone: Beale, former president, founder and marketing. (248) 647-1144. Website: www.mashni co-owner of FlightWorks. ADI head- National Enclosure Co. LLC, Pontiac, a quarters will remain at the Oakland smiles.com. design, manufacturer and installer of County International Airport. building facades, chose Wagner De- Ward Williston Oil Co., Bloomfield sign Associates LLC, Ann Arbor, to de- DIARY GUIDELINES Hills, sold the oil field service division sign and produce its new corporate ca- of the company, located in Westhope, pabilities brochure. Send news releases for Business N.D., to an affiliate of Missouri Basin Diary to Departments, Crain’s Well Service Inc., Belfield, N.D. EXPANSIONS Detroit Business, 1155 Gratiot CONTRACTS Golling Motors Inc., Bloomfield Hills, Ave., Detroit, MI 48207-2997 or opened Golling Fiat of Birmingham at send e-mail to cdbdepartments@ Franco Public Relations Group, De- 34500 Woodward Ave. Telephone: (888) crain.com. Use any Business Diary troit, added the following clients: De- 408-4582. Website: www.fiatusa item as a model for your release, troit Historical Society, Detroit; YWCA ofbloomfieldhills.com. and look for the appropriate of Metropolitan Detroit, Detroit; and category. Without complete The Salvation Army-Southeast Michi- NAME CHANGES information, your item will not run. gan Adult Rehabilitation Center, De- Photos are welcome, but we cannot troit. ForeSee Results Inc., Ann Arbor, is guarantee they will be used. Clor Lighting Group LLC, Grosse changing its name to ForeSee.

PEOPLE Beverage Association, Warren, from N THE SPOTLIGHT vice president of administrative ser- I vices. Also: Jennifer Werner to vice Pontiac-based Doctors’ Hospital of president of insurance operations, Michigan has appointed Ellen from executive director of business Bussey vice development; Bonnie Bochniak to vice president of president of government relations, patient care from director of government rela- services and tions; Taryn Misajlovski to executive chief nursing director of events and education from officer. director of events; and Alicia Wilson to director, 101 Best and Brightest Com- Bussey, 51, panies to Work For, from associate di- had been rector of events. director of Michael nursing at Francesco Alioto Samaritan to vice president, Bussey Manor in global methodolo- Detroit. gies, Gongos Re- She replaces Sherrie Berg, who search Inc., retired. Auburn Hills, Bussey earned a Bachelor of from vice presi- Science from the former Mercy dent, marketing College in Detroit and an MBA with sciences. Also a specialization in health care Lynn Siluk to vice management from the University of Alioto president, market- Phoenix in Southfield. ing sciences, from research director. DHM, the former North Oakland Medical Centers and Pontiac Ken Lupo to direc- General Hospital, is a for-profit, tor of technology, physician-owned acute-care Humantech Inc., hospital. Ann Arbor, from director of technology, Saline FINANCE Area Schools, Kala Gibson to se- Saline. nior vice president, Fifth Third Siluk Bank Eastern TELECOMMUNICATIONS Michigan, South- field, from senior Geoff Kotila to regional director, business development, , vice president, vCom Solutions Birmingham, from vice president, business banking, business development, Blue Ocean Comerica Bank, Advisors Inc., Novi. Detroit. Also: Bri- an Black to senior lender, head of PEOPLE GUIDELINES Gibson commercial banking from leader of business banking; Announcements are limited to and Aleta Young to retail regional management positions. Send manager, from district manager. submissions to Departments, Jeffrey Levine to senior vice president Crain’s Detroit Business, 1155 of retail and consumer lending, Level Gratiot Ave., Detroit, MI 48207- One Bank, Farmington Hills, from 2997, or send e-mail to area manager for greater Michigan, [email protected]. Wells Fargo Home Mortgage, Farm- Releases must contain the person’s ington Hills. name, new title, company, city in SERVICES which the person will work, former title, former company (if not Jan Prevost to executive vice presi- promoted from within) and former dent of administrative services, Michi- city in which the person worked. gan Business and Professional Associ- Photos are welcome. ation and Michigan Food and DBpageAD.qxp 9/22/2011 3:05 PM Page 1

Thursday, Oct. 20, 2011 What will you do in 2014? Motor City Casino Hotel Keep health care coverage or pay a penalty 7:30 a.m. – 2 p.m. and let your employees ﬁ nd their own solutions?

Employers face big decisions before EMPLOYERS: Come to the Crain’s Health Care Leadership Jan. 1, 2014. Will employers keep their Summit and receive: plans or drop their coverage? Employers, I case studies on reducing costs and insurers, physicians and hospital execs improving care will discuss plans for Michigan’s state- I tools and frameworks that will help you run health insurance exchange and ways make decisions by 2014 -- if the courts smart employers are designing plans and let mandated care and insurance wellness programs to reduce health-care exchanges stand premium sticker shock. I take-away handbook on federal REGISTER at requirements and timelines www.regonline.com/2011healthcare MORNING SPEAKERS: LUNCH SPEAKER FULL DAY CONFERENCE: $99 each (includes a one-year print subscription to Crain’s Detroit Business.)

SAVE! GROUPS OF 10 OR MORE: $90 each. Reserve groups by phone only, 313.446.0300.

HEALTH CARE HEROES AWARD LUNCHEON ONLY: $50 each Dianne Kiehl R. Craig Reynolds Scott E. McFarland Executive Director, Corporate Director, Former President, AT THE DOOR $110 each Business Health Care Employee Beneﬁ ts Wellness, Group of Southeast Briggs & Stratton Cleveland Clinic Wisconsin Corporation PLUS Learn how Wisconsin employers banded together to signiﬁ cantly cut health care costs AWARD CEREMONY 20110926-NEWS--0020-NAT-CCI-CD_-- 9/23/2011 10:06 AM Page 1

Page 20 CRAIN’S DETROIT BUSINESS September 26, 2011

CALENDAR TUESDAY Motors Co.; Gary Spondike, vice presi- JOIN THE HOUSE PARTY dent and marketing strategist, Skid- SEPT. 27 more Studio; and Ed Garsten, head of electronic communication, Chrysler Troy’s Women of Influence. 8-9:30 a.m. WEDNESDAY AT THE ROOSTERTAIL Troy Chamber Women’s Business Fo- Group LLC. Westin Book Cadillac, De- Crain’s troit. $499 IABC members, $599 non- rum, Health Alliance Plan. With Ru- Detroit members, $99 student/faculty. Con- mia Ambrose-Burbank, president, Business Vendor Managed Solutions; others. and the tact: (313) 565-4700; email: dsalem@ Merrill Lynch, Troy. $15 members, $20 Michigan asgren.com; website: www.iabc nonmembers. Contact: (248) 641-0031; State shiftinggears.com. email: [email protected]. Housing and Development Authority present the sixth annual Crain’s The Michigan Economy and its Impact WEDNESDAY Detroit House Party on Wednesday. on the Nonprofit Sector. 8-10 a.m. Oct. It’s a chance for suburban 11. United Way for Southeastern SEPT. 28 dwellers to meet urban dwellers Michigan, Michigan Nonprofit and experience residential living in Association, Plante & Moran, Blender Remaking Detroit’s Midtown. 11:30 Detroit, with cocktail parties at Consulting Group, the McGregor a.m.-1:30 p.m. Inforum. With Michael Detroit’s finest historic homes, Duggan, president and CEO, Detroit Fund, and the Center for Nonprofit lofts, condominiums and Management at Lawrence Technologi- Medical Center; Allan Gilmour, presi- apartments. dent, Wayne State cal University. With Michael Finney, University; and It’s too late to buy a ticket to tour president and CEO, Michigan Eco- Nancy Schlichting, a home, but you can still get nomic Development Corp. Lawrence CEO, Henry Ford tickets for the afterglow at the Technological University, Southfield. Health System. Roostertail, which runs 7:30-10 $25. Contact: (248) 204-3095; email: non- MGM Grand De- p.m., for $50. [email protected]; website: troit. $55 mem- For more information, call (313) www.ltu.edu. bers, $65 nonmem- 446-0300 or visit bers, $480 table of www.crainsdetroit.com/events. eight. Contact: The Business of Plugging In. Oct. 11- (877) 633-3500; web- 13. Center for Automotive Research. a.m.-2 p.m. National Association of site: www.inforum With Deb Frodl, senior vice president Women Business Owners-Greater De- Schlichting and chief strategy officer, GE Capital michigan.org. troit Chapter, General Motors Co. San Fleet Services; , co-direc- Marino Club, Troy. $30 members, $40 Brett Smith TEDxDetroit 2011. 8 a.m.-6 p.m. nonmembers. Contact: (313) 300-1710; tor, manufacturing, engineering and Wayne State University, General Mo- email: [email protected]; website: technology group and assistant re- tors Co., others. With Randal www.nawbogdc.org. search director, Center for Automo- Charlton, co-founder, Asterand plc; tive Research; and Richard Wallace, Christina Keller, business unit leader, director transportation systems Triple Quest; others. Max M. Fisher analysis group, Center for Automo- Music Center, Detroit. $26, includes COMING EVENTS tive Research. Hyatt Regency, Dear- lunch. Contact: (248) 304-1454; email: Annual Awards Program. 5-9 p.m. Oct. born. $950, $1,025 onsite. Contact: (734) [email protected]; website: 4. Michigan Minority Supplier Devel- 929-0496; email: [email protected]; www.tedxdetroit.com. opment Council, Max Fisher Theatre, website: www.bpiconference.com. Detroit. $150. Contact: (313) 262-7516; email: [email protected]; website: www.mmbdc.com. CALENDAR GUIDELINES THURSDAY If you want to ensure listing online SEPT. 29 Crain’s Michigan Business: and be considered for print Southeast. 7:30-10 a.m. Oct. 4. Can publication in Crain’s Detroit NAWBO Greater Detroit 2011 Procure- Michigan Grow Auto Jobs? With Business, please use the online ment Expo and Ride & Drive Event. 9 Sandy Baruah, president, Detroit Re- calendar listings section of gional Chamber; Peter Brown, pub- www.crainsdetroit.com. Here’s lisher and editorial director, Automo- how to submit your events: tive News; Neil De Koker, president From the Crain’s home page, click and CEO, Original Equipment Suppli- “Detroit Events” in the red bar near ers Association; others. The Henry, the top of the page. Then, click Dearborn. $40, $35 for groups of 10 or “Submit Your Entries” from the more, $50 at the door. Contact: (313) drop-down menu that will appear 446-0300; website: www.crainsdetroit. and you’ll be taken to our online com/events. submission form. Fill out the form as instructed, and then click the International Association of Business “Submit event” button at the Commmunicators Heritage Region bottom of the page. That’s all there is to it. Conference. Oct. 9-11. With George Zimmermann, vice president, Travel More Calendar items can be found Michigan; Katie McBride, executive on the Web at director of communications, General www.crainsdetroit.com.

Mark Davidoff We’ll discuss: , Michigan Managing WEBCAST EVENT Partner, How the new G Historical look at Deloitte LLP Patent Reform Act The rising federal debt is federal government spending affects your generating a lot of attention in Alice Rivlin, G Perspective on the Senior Fellow in the business Washington DC, the media, and Economic Studies government debt Thursday, on Main Street, but signifi cant issue (U.S. and Program at confusion remains regarding the globally) Brookings; member of the October 27, 2011 Commission on Fiscal Noon to 1:00 p.m. EDT magnitude of the problem, how G Summary of work Responsibility and Reform RSVP: Call 1.800.847.6424 or visit we got here and what we need to of the U.S. Bipartisan (The Simpson Bowles www.mcdonaldhopkins.com Policy Center Task Commission) do to fix it. What does all of it Force on the federal mean for U.S. businesses? debt Bob Campbell, Vice Chairman and G OCT. 11|Noon – 1 p.m. EST The potential impact U.S. State Leader, on U.S. businesses Deloitte LLP; McDonald Hopkins PLC member Bipartisan Policy 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 • 248.646.5070 To learn more, please visit G Summary of recent Commission task force on Carl J. Grassi Stephen M. Gross www.crainsdetroit.com/crainsevents U.S. debt ceiling the Federal deficit President Detroit Managing Member FREE to Crain’s readers Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach www.mcdonaldhopkins.com 20110926-NEWS--0021-NAT-CCI-CD_-- 9/23/2011 3:50 PM Page 1

September 26, 2011 CRAIN’S DETROIT BUSINESS Page 21 DMC physicians pick Dearborn PHO over DMC’s group

BY JAY GREENE 2012, and no later than Oct. 1, 2013, said. “We at UOP are giving physi- DMC), we will come out ahead. Kopson said. “It is more difficult to CRAIN’S DETROIT BUSINESS according to its bylaws. cians an opportunity to stay in pri- May the best team win,” Ham- achieve if (the doctors) are scat- Kopson said ACP does not want vate practice and, through us, moud said. “We are talking with tered (in other contracts).” Up to 1,100 private-practice to tie itself to any one hospital- partner with the hospitals.” government and multiple hospi- Kopson said the affiliation with physicians affiliated with Detroit based system like DMC. Physician organizations like tals and positioning ourselves to UOP preserves ACP’s autonomy yet Medical Center have signed an affil- “It is difficult to restrict yourself UOP provide private practice doc- improve quality.” gives it full membership in UOP. iation agreement with 1,200-physi- to a single hospital or hospital sys- tors with access to managed care There are more than 3,000 pri- “UOP will also be providing in- cian United Outstanding Physicians tem in a major metropolitan area contracts, utilization management vate physicians on the medical frastructure support and assis- LLC, a Dearborn-based physician like Detroit,” he said. “Individual and assistance with information staffs at DMC’s nine hospitals and tance for ACP’s own physician organization, over DMC’s own ACP physicians technology, Hammoud said. more than 700 who are faculty group incentive payment group,” fledgling physician-hospital orga- will have the Under the agreement with UOP, members at Wayne State University Kopson said. “ACP will receive as- nization and Wayne State University freedom to also Accountable Care Physicians will School of Medicine. Most of the sistance with electronic medical Physician Group. participate with become part of a separate managed Wayne State doctors also are part record, patient disease registry por- The agreement, which was ap- the DMC PHO care contracting risk group, Ham- of WSU’s faculty practice group, tals, guidance and assistance with proved over the past two weeks by and other physi- moud said. which ACP considered joining. practices and helping primary care UOP and Accountable Care Physicians, cian organiza- “They are going to join our con- “Clearly, if you have primary practices become medical homes.” is expected to dilute the potential tions if they tracts, but first we want to give care physicians working in a sin- Jay Greene: (313) 446-0325, contracting effectiveness of DMC’s choose to do so.” them an opportunity to work with gle contract you have opportunity [email protected]. Twitter: physician-hospital organization. Kopson said us and understand (our system),” to improve quality and cut costs,” @jaybgreene “We did not consider the DMC ACP also chose Hammoud said. “We dance first PHO,” said Hassan Amirikia, Kopson UOP because of before we get married.” M.D., president of Accountable its large number of payer contracts. Over the next couple years, Kop- Care Physicians. “We have joined Since it formed last November un- son said, health care reform will UOP because it der Steven Grant, M.D., DMC PHO provide opportunities for physi- MARKET PLACE has better infra- has signed up more than 1,000 doc- cians to band together to contract structure, con- tors, said Tiffany Jones, DMC’s for a wide range of outpatient and DELIVERY SERVICES Call Us For Personalized tracts and pro- press secretary. Most of those doc- inpatient services. Service: (313) 446-6068 grams to help us tors also belong to two or more “The goal is to get into Blue Cross Local Trucking/Warehousing provide high- physician organizations, she said. Blue Shield of Michigan’s organized 1 Pallet - Truck Loads FAX: (313) 446-1757 quality care to “The DMC PHO made it clear system of care (contracts) and “Where You Get Your Buck$ Worth” Same Day - Next Day E-MAIL: [email protected] Canadian Consolidations INTERNET: our patients.” from the beginning it has no objec- Medicare contracts (for account- Storage Trailers www.crainsdetroit.com/section/classifieds ACP was tions to any doctor who joins mul- able-care organizations),” Kopson Trailer Parking www.mrtransportation.com See formed in No- tiple physician organizations,” said. “It is important to give ACP [email protected] Crainsdetroit.com/Section/Classifieds vember 2010 by Jones said. “Not a single DMC physicians the same potential to 734-946-7031 for more classified advertisements Amirikia physicians not PHO doctor has withdrawn from participate in those programs.” employed by DMC to enter into con- the DMC PHO, so this does not in One of the provisions of the tracting arrangements with other any way negatively affect DMC.” health care reform bill, the Afford- physician organizations under On Jan. 1, DMC became the able Care Act of 2010, allows health care reform, Amirikia said. property of Nashville-based Van- provider organizations to form ac- REAL ESTATE Mark Kopson, ACP’s attorney guard Health Systems, a for-profit countable-care organizations. An and health care chairman with multihospital system. ACO can accept responsibility for APARTMENT BUILDINGS Plunkett Cooney PC in Bloomfield Yasser Hammoud, M.D., UOP’s the cost and quality of care deliv- COMMERCIAL PROPERTIES Hills, said ACP decided against af- president and chief medical offi- ered to specific populations of pa- -- DEVELOPERS -- filiating with the DMC PHO be- cer, said most hospitals are trying tients. Apartment Mgmt Specialists OWNER MUST SELL! cause the DMC PHO’s bylaws con- to persuade physicians on their While some DMC-affiliated doc- We deliver results for Owners tain a provision that could restrict medical staffs to either become em- tors will participate with the DMC 5.5 acres zoned commercial. physicians to only contracting un- ployed or engage in close contrac- PHO, Hammoud said he believes www.silversidemanagement.com Approved for shopping center. der DMC managed care contracts. tual relationships. ACP doctors will become more ac- Across from Courtland Mall, 248-246-7203 Center/Court Street - Flint The DMC PHO board must ap- “Hospitals are trying to squeeze tive in UOP. $1.3M prove that restriction after Oct. 1, private physicians,” Hammoud “If we do a better job (than David Weiss -- 248-763-8814 ANNOUNCEMENTS Major Golf Course -- Must Sell! INDUSTRIAL PROPERTY Price Reduced -- $700,000 or make offer Call for Details Tom Hyek & Company 586-726-7616 AVAILABLE NOW UOP, St. Mary launch program to cut ER costs 4,000 to 100,000 sq. ft. STOP BY JAY GREENE sire to partner on this issue. One of make sure they see their primary COMMERCIAL REAL ESTATE Also 10,000 & 25,000 sq. ft. CRAIN’S DETROIT BUSINESS their motivations we and they had care physician within seven days. was just to provide better care,” Hammoud said 15 physicians FORECLOSURE Free Standing Bldgs w/truckwells. A group of about 35 private-prac- said Peter Dews, M.D., St. Mary’s initially joined the pilot program • All property types 1 Mile from Metro Airport tice doctors affiliated with Dear- chief medical officer. with another 20 doctors expected • 7-9% fixed rates born-based United Outstanding Yasser Hammoud, M.D., UOP’s to participate in the coming weeks. • 30-day closing REA CONSTRUCTION Physicians and St. Mary Mercy Hospi- president and chief medical officer, “We are coordinating care much • 30-year amortization tal in Livonia are getting ahead of said contracts like this will teach more to eliminate elaborate tests • Foreclosure OK (734) 946-8730 the health care reform curve by physicians and and make sure patients are on the • Bankruptcy OK Also Heavy Industrial working together in a pilot project hospitals how to right medications,” said Bill Run- • Receivership OK to reduce unnecessary tests in the work together to co, UOP’s COO. Land Available emergency department and cut reduce costs and Runco said this agreement is un- IVY PRIVATE CAPITAL avoidable hospital readmissions. improve quality. usual because “potentially this is www.ivyprivatecapital.com www.reaconstruction.net The intent of the pilot agree- “We are trying less revenue for a hospital.” Tests 248-430-4858 ment, which is believed to be the to prepare for the conducted in the ER and admis- "The place to go when Call or email today for information first of its kind in Southeast Michi- future to become sions through the ER generally are on a custom advertising plan! gan, is to improve quality of care an accountable- moneymakers, he said. your bank says NO!" [email protected] and reduce costs. care organiza- Hammoud said UOP wants to ex- 313.446.6068 In 2013, Medicare will cease pay- tion” under pand the program to other hospi- Hammoud ment for certain patients who are health care re- tals where its doctors admit pa- readmitted within 30 days after dis- form, Hammoud said. “We need to tients. The Crain’s reader: charge. More than 50 hospitals in pay attention to the continuum of Dews said St. Mary has added Michigan are working on various care when our patients go to hospi- staff in the ER and developed pro- 29.2% are with companies projects with physicians, home tals and utilize services where tocols to contact UOP physicians. health agencies and nursing homes health costs are higher.” “We have a person called a man- contemplating moving/ to reduce hospital readmissions. Under the “transitions of care” aged care coordinator who collects Blue Cross Blue Shield of Michigan, agreement, St. Mary’s emergency relevant information in the ER,” expanding. Help them which also does not pay for certain physicians are required to call par- Dews said. “Should a patient be ﬁnd you by advertising in unnecessary hospital readmis- ticipating UOP physicians when discharged home, all the informa- sions, also is encouraging more one of their patients is treated in tion is sent to the personal physi- Crain’s Real Estate section. physician and hospital collabora- the ER, in part to help prevent du- cian so there are no delays in ap- tion to reduce readmission rates as plicative testing, Hammoud said. propriate care.” 313.446.6068 • FAX: 313.446.1757 part of its physician group incen- Hammoud said that when pa- Jay Greene: (313) 446-0325, tive program. tients are discharged from the hos- [email protected]. Twitter: E-Mail: [email protected] “UOP approached us with a de- pital they also are contacted to @jaybgreene 20110926-NEWS--0022-NAT-CCI-CD_-- 9/23/2011 5:33 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS September 26, 2011 New liquor commission chief expects changes in license process

In June, Gov. Rick Snyder ap- dent Business-Michigan. His 18 years once: “Oh, you were part man of the commission? Is less regulation and elimination of pointed Andrew Deloney to a four- in Lansing began in 1993 as an in- of the solution; now The most visible part of the state’s fixing of the retail price of year term as chairman of the Michi- tern on the state House Republican you’re part of the prob- what we do is the licensing liquor a possibility or anything you are gan Liquor Control Commission. The staff and includes serving as a leg- lem.” I don’t see myself as function … how people ap- looking at? agency, with a staff of nearly 150 islative assistant in the chamber. being part of the problem. ply for licenses and the I’d like to point out that the and a $17.8 million current year Crain’s Capitol Correspondent My charge is to make process they have to go Michigan Department of Licensing budget, manages the beer, wine, Amy Lane spoke with Deloney as he sure that we’re creating through in order to get and Regulatory Affairs and the Office distilled spirits and mixed-spirits lays groundwork to make the com- policy that is fair and that them. It is safe to say that of Regulatory Reinvention has estab- drink industries in Michigan, with mission more business-friendly. allows businesspeople to there is a great deal of lished an advisory rules commit- a purview that includes licensing, compete fairly, without frustration and dissatis- tee for liquor issues. regulation and enforcement. What has been the biggest transition the regulatory agency fa- faction with the licensing We’re going to overturn every Deloney, 38, previously was vice for you — in going from an industry regu- voring one kind of busi- process, and that is the rock and see why are we doing president of public affairs for the lated by government to being inside ness over another, with- part that is most in need of things this way. Why do we have Michigan Restaurant Association and, government and being the regulator? out favoring one size of major reform and reinven- Andrew Deloney, this law? Why do we have this re- before that, assistant state director I guess the biggest difference is business over another. tion. And that’s exactly quirement? If there are compelling of the National Federation of Indepen- that, as someone joked with me Part of the challenge is Michigan Liquor what we are in the process Control reasons as to why we have a certain every time we make poli- of doing right now. Commission law or requirement, then I’m cer- cy decisions somebody’s How so? tain the recommendation will be to not going to be happy The first thing is that the prob- keep it. If there are compelling rea- with it. But the idea is to create an lem that we have, it was not creat- sons why we should amend or elim- environment where people can op- ed overnight. The overall process inate a certain requirement or erate their businesses, in which is largely one that has been creat- process, then we’ll do that. they feel invited, feel welcome to ed by the commission itself over There should be nothing in the open a business and do so with as the last couple decades. It has liquor control code, in the promul- little government restriction and snowballed into a process that has gated rules of the Liquor Control regulation as possible. several problems. Commission or our internal This is an agency that, going for- First, it’s apparent that not all the processes here that shouldn’t be ward, is doing our decision-mak- decision-making was based on what subject to debate or discussion. ing based on what the statutes and the statute and the rules authorize. the rules say. Do you see limits being lifted on the Second, it is a process that is very number of liquor licenses available in Are you saying the previous com- uncertain and unpredictable, each community? missions didn’t do that? where applicants really sometimes Since the end of Prohibition in I’m just saying that to all of us as don’t know what is expected of 1933, small-business owners have commissioners, it’s very impor- them in terms of getting a license or played by the rules set up by the tant to us that the people of Michi- how long it’s going to take. And you Michigan Legislature, as far as the gan know that we are basing deci- can’t make business decisions availability of licenses. Because sions that we make on the statutes based on that kind of process. the Legislature … decided that li- and the promulgated rules of this We are working right now to censes should be subject to a quota, state. People may be of the under- make some significant changes. in effect they gave quota liquor li- standing that we can just grant a What are some of these changes? censes monetary value. license to anybody in any kind of We’re looking at things like dif- So you have thousands of li- business, and the fact is that we ferent permits that licensees have censees who have played by these cannot, based on what the statutes to have, such as Sunday afternoon rules and in many cases … have paid and what the rules say. permit, Sunday morning permit, a huge sums of money to get a license. What are some of the things you’ve catering permit. The process for You’d essentially be saying to them, been doing since you became chair- getting those can be long and com- if we increased the number of licens- plicated … and can be dramatical- es available in their community, ly simplified and shortened. we’d be devaluing their asset. (For) nonprofit associations that But the problem is, as the econo- apply for one-day licenses, special my gets better, there is going to be licenses, we are making a clearer more demand for liquor licenses. process for them. We’re changing And at some point we are going to be forms so that the applicants know running out of the number of licens- exactly what is going to be re- es that are available, and something quired. There is going to be a has to be done about that. checklist at the very front; if you Do I know what the answer is to- can check off all the boxes, day? No. But the fact of the matter chances are you are going to have is, it is something that we are going a successful application. to have to be discussing and con- This is one small part of the sidering. process that is going to be changed. Amy Lane: (517) 371-5355, We are going to be announcing sev- [email protected]. Twitter: eral more in the coming weeks. @alanecdb

Michigan banks slow to recover from recession Michigan banks lag their nation- One Bank, Novi; Talmer Bank and al counterparts in recovering from Trust, Troy. the recession, according to the latest Ⅲ Four stars: Bank of Ann Arbor; quarterly rankings by BauerFinancial Huron Valley State Bank; Main Street Inc., a Florida-based ratings service. Bank, Bingham Farms. Bauer bases ratings on financial Ⅲ Three and a half stars: Bank of reports filed by banks with the Fed- Birmingham, Chelsea State Bank, eral Deposit Insurance Corp. for the Dearborn Federal Savings Bank, First quarter that ended June 30. It gave State Bank, St. Clair Shores. 40.7 percent of the nation’s banks Ⅲ Three stars: Citizens Bank, the highest rating of five stars, the Flint; First Independence Bank, De- highest percentage since Sept. 30, troit; Flagstar Bank, Troy; Sterling 2007. Only 18 percent of Michigan Bank and Trust, Southfield; United banks got the top rating, 25 of 140. Bank and Trust, Ann Arbor; Universi- In Southeast Michigan, the ty Bank, Ann Arbor. number of five-star and zero-star Ⅲ Two stars: Bank of Michigan, banks remained unchanged from Farmington Hills; Monroe Bank and the quarter that ended March 31. Trust. Here are the ratings for area Ⅲ Zero stars: First National Bank banks: in Howell; Michigan Commerce Bank, Ⅲ Five stars: Ann Arbor State Ann Arbor; Fidelity Bank, Dear- Bank, Crestmark Bank, Troy; Level born; Oxford Bank. One Bank, Farmington Hills; Lotus — Tom Henderson 20110926-NEWS--0023-NAT-CCI-CD_-- 9/23/2011 5:35 PM Page 1

September 26, 2011 CRAIN’S DETROIT BUSINESS Page 23 Mannion: Free rein to grow Palace Your Bank’s ■ From Page 3 inum’s senior executive responsi- Lichtenstein asked Mannion to Not Lending? ble for evaluating investment ini- be his adviser on ADPT, a $500 mil- tiatives, and Robert Wentworth, a (Mannion will) lion holding company that has former Ernst & Young CPA and for- “ been investing in youth sports mer CEO. put the fans first. ventures such as camps, clinics Norment and Wentworth were and the tournament business. He Gores’ on-site senior executives in He’ll do the research had a consulting contract with the charge at the Palace during the understanding he would become ownership transition, and they led to find out what they CEO at some point, Mannion said. the analysis of PS&E’s business A search firm called him about a practices. like. hockey executive job when a con- Joe Dumars continues to over- ” sortium led by Chicago investor see all basketball operations of the Mike Dietz, Dietz Trott Matt Hulsizer was trying to buy Pistons. Sports & Entertainment LLC the NHL’s bankrupt Phoenix Coy- Mannion said Gores is available otes in a deal earlier this year that whenever he needs to talk to him. Improvement plans eventually collapsed. “Tom sits in a position that you Other changes in the works in- “I was very attracted to that can tap his knowledge,” he said. clude improvements to the light- chance,” he said. “When that fell “He’s not much of a meddler. The ing and to the flashy start of each through, I really dedicated myself way he’s run all of his other enti- Pistons game. Construction of a to the youth sports thing.” ties is getting the great people and temporary production studio and Then the search firm called ours are letting them do what they do.” the purchase of new equipment is about the Palace Sports job. He . planned as part of a plan to im- took the job and has said his famil- Call for a free consultation. prove the team’s ability to create iarity from working with Lichten- Loan amounts: $1,000,000.00 and above. The numbers content such as Pistons shows for stein’s companies has helped him Gores bought PS&E and the assimilate quickly to Platinum Eq- telecasts and online. s Investment Real Estate s Equipment team for $325 million in June and “We’re making some pretty uity’s culture. s Owner Occupied Real Estate s Turnaround Consulting hired Mannion to replace Alan Os- sweeping changes to the game op- “When you lay out what it is you s Lines of Credit s Loan Modiﬁcations tfield, who was fired June 30 amid erations front,” he said. need to do strategically, they’re s Accounts Receivable s Bank Workouts management changes. Ostfield had He also wants to expedite park- very good at responding quickly,” been promoted by the previous ing and improve fan experience on he said. “There’s not a whole lot of ownership to replace Wilson. game day with improved conces- red tape. They have a very urgent Palace Sports is the umbrella sions and customer service culture. These guys all have slight- corporation for the Pistons, the through new training that’s being ly different talent sets, so you get a 22,076-seat Palace of Auburn Hills implemented. full 360 perspective.” and DTE Energy Music Theatre, and “I’ve got a particular strategy I Sports industry insiders rave holder of the contract to manage want to follow on pursuing mar- about Mannion. 800.509.3552 Meadow Brook Music Festival for keting share and revenue,” he When Mike Ilitch bought the De- www.eclipsecapitalgroup.com Oakland University. troit Tigers in August 1992, he sent said. While not revealing particu- 2207 Orchard Lake Road, Sylvan Lake, MI 48320 The Palace ranks behind only lars, he did say there has been a Mike Dietz, director of sales and “Since 1997” New York’s Madison Square Gar- minor restructuring and shuffling marketing, and other team execu- den as a concert venue, based on of PS&E departments, such as a tives to other franchises to see how ticket sales. single communications group for they market themselves to fans. PS&E had revenue of about both the Pistons and Palace. Dietz, now president and direc- $70 million last year, and the Pis- There haven’t been any staffing tor of Dietz Trott Sports & Entertain- tons had operating income of cuts, he said, and any new hires ment LLC in Farmington Hills, Trust and Estate Experience $32 million on revenue of $147 mil- will come as the situation calls for went to see the Philadelphia Phillies lion for the 2009-2010 season, ac- it. when Mannion was in marketing cording to estimates by Forbes. “We’ll identify any talent short- there. Part of Mannion’s job is to boost ages, then go get them,” he said. “Out of all the teams, he was In Your Corner. those numbers further for Gores. PS&E has about 250 full-time one of the most helpful,” Dietz The team struggled last season, employees, and another 1,200 on said. “To me, he’s very well orga- finishing 30-52. That resulted in game days. nized. He’s promotionally mind- average attendance at Pistons ed. He’ll put the fans first. He’ll do games plunging to 16,660 a game the research to find out what they over the 41-game home season, Industry veteran like.” ranking the team 18th in NBA at- Mannion has spent 29 seasons Those sentiments were echoed tendance. For much of the past working in four major profession- by Haynes Hendrickson, president decade, the team led the league in al sports, including two years with of Haddonfield, N.J.-based Turnkey attendance or was near the top. Ascent Sports managing business Sports & Entertainment Inc., which Attendance will be a difficult is- operations for the Denver Nuggets measures brand effectiveness and sue for Mannion to tackle because of the National Basketball Associa- values of pro sports teams. it’s linked to winning, but also to tion and the Colorado Avalanche of Early in his career, Hendrick- another factor beyond his control. the National Hockey League, from son worked for Mannion in He’s not allowed by NBA edict to 1998 to ‘99, the Pistons said. Philadelphia and Denver, and he talk about one of his biggest chal- He also worked in the front of- said he learned from him more lenges in his new job: the league’s fice of the Baltimore Ravens of the than from anyone else. labor situation. The team owners NFL from 1999 to 2007 and for the “He is the perfect guy. He’s a locked out the players on July 1 in Philadelphia Phillies of Major League brand marketer. He’s not just a dispute over splitting the Baseball from 1982 to ‘97. someone overseeing the opera- league’s revenue, and until there Mannion left the Dodgers in Oc- tions of the team, but adds life to is a new deal — not expected at tober as the team’s president and it. I cannot say enough good least until January, according to COO amid an ownership divorce things about him,” Hendrickson some — Mannion faces 41 empty dispute that subsequently has led said. nights at the Palace he cannot oth- the team into a financial crisis, Gores was complimentary of his erwise fill. bankruptcy and takeover by Major new executive. When the team is playing (and League Baseball. “Dennis is very well qualified winning), he can rely on a popular Mannion has a confidentiality and will bring a fresh perspective venue that fans seem to enjoy and agreement that prevents him from to the organization,” he said in a Tom Bergh that has been modernized since talking about the specifics of his statement announcing Mannion’s opening in 1988. The Palace carries tenure with the Dodgers, but he hiring. “He is an innovative guy, no debt because former owner did say it was a difficult situation. and he shares our vision of creat- Davidson built it with $90 million “When a couple breaks up like ing the best possible experience from his own pocket. Davidson that, it had a detrimental effect on for our fans. He also shares our spent an additional $112.5 million where the business was headed,” core values of hard work and com- in subsequent renovations of the he said. mitment to the community. Den- arena, which has 193 suites. Former Dodgers manager Tom- nis knows what it takes to succeed Mannion is seeking league ap- my LaSorda introduced him to at a high level, and we are excited proval for what he called “aggres- Warren Lichtenstein, who runs a to have him on board.” Contact Tom at [email protected] sive changes” for player areas such Bill Shea: (313) 446-1626, New York City hedge fund and I Novi I Grand Rapids I Kalamazoo I Grand Haven I Lansing as the locker room and training ar- owns Milpitas, Calif.-based ADPT [email protected]. Twitter: eas. He declined to give details. Corp. @bill_shea19 20110926-NEWS--0024-NAT-CCI-CD_-- 9/23/2011 5:43 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS September 26, 2011 Pilot: Business Connect Cash crunch closes science center for 2 weeks

BY SHERRI WELCH The closure will allow the sci- of Chrysler Group LLC, launched an CRAIN’S DETROIT BUSINESS ence center to hold down expenses, in-depth review of the center’s fi- to back 54 companies conserve operating cash, re-exam- nances, which turned up an insuf- ■ From Page 3 The Detroit Science Center said ine its operations from top to bot- ficient amount of working capital. Friday it laid off 100 employees for tom and work towards developing The science center’s ambitious He said the state is taking an tial customers in other states. the next two weeks and will shut- a strategic plan to ensure long- growth in 2008-09, with plans to entrepreneurial approach to However, the MEDC will not ter the center, its exhibit-building term viability, the science center build two national traveling exhi- business growth by trying out pick out specific company names subsidiary and the Detroit Chil- said in a statement. bitions, a building expansion to in- new forms of support — beyond as potential customers, she said. dren’s Museum during the same pe- The center plans to bring in out- clude a public charter middle just handing out money. If the pilot goes as planned, the riod while it looks for a way to re- side turnaround consultant help, school, the launch of its DSC De- “We have to support entrepre- state will begin accepting more gain financial footing. Fulford said. sign & Exhibits subsidiary and a neurial programs and entrepre- applications in 2012. The museums and DSC Design & The closure comes just a month new 4-D theater and new exhibits neurial activities,” he said. “The Finney also mentioned the Exhibits LLC subsidiary will close after former President Kevin Pri- for the museum put a strain on the thing that is most important is move by Snyder’s administration today through Oct. 12. hod resigned. Prihod resigned center’s finances, Fulford said. helping existing businesses to replace brownfield tax credits, The University Preparatory public Aug. 29, after leading the center The economy and subsequent grow.” which Finney said were not use- charter middle school, which since 2005 and serving as chief sci- declines in philanthropic giving, He discussed the Pure Michi- ful because they stretched out opened at the Detroit Science Cen- ence officer before that. along with lower-than-expected at- gan Business Connect Toolkit, over too many years. Instead, he ter two years ago, operates inde- The center said at the time that it tendance at the Accidental Mum- which provides businesses with said, the state is looking to pro- pendently and remains open. faced revenue shortfall and had fall- mies of Guanajuato exhibit in 2009- resources to connect with pur- vide smaller, short-term support “We are in a serious cash crisis en behind on payments on a $5 mil- 2010, compounded the financial chasers, consultants and capital. that a company can use more — we do not have the operating lion loan tied to its 2001 expansion. issues, the center said. The program will include four quickly. Examples include the capital to be open for the next two On the same day that Prihod re- On its most recent tax form filed areas of support based on an Ed- MEDC’s collateral support and weeks,” said Kelly Fulford, vice signed, interim president and CEO for 2009, the center reported a loss ward Lowe Foundation model of loan participation programs. president of sales and marketing. John Miller, who is vice chairman of just under $588,000, with rev- “economic gardening,” said Crain’s and the Small Business “We aren’t offering any guaran- of the science center’s board, di- enue of $10.5 million, down from Nicole Whitehead, business de- Association of Michigan hosted last tees, but right now we’re anticipat- rector of Michigan State University’s $10.8 million in 2008. It covered velopment analyst at MEDC: week’s workshop at the Michigan ing this will be a two-week layoff executive MBA program and a 25- losses from net assets which were strategy and management; in- State University Management Edu- and shutdown.” year product development veteran $25.2 million at the end of 2009. state market research; Internet cation Center in Troy. Lead spon- and social media strategy; and a sors were Huntington Bank, Au- geographical information system tomation Alley and Blue Cross Blue that identifies pockets of poten- Shield of Michigan. Baskin gets deadline to address relationship with client

BY CHAD HALCOM Olson filed for divorce in 1999 the decision to the full board. CRAIN’S DETROIT BUSINESS from John Olson, founder and Baskin told Crain’s this week chairman of St. Clair Shores-based that he did have a well-known rela- Attorney Henry Baskin of the J.M. Olson Corp., a general contrac- tionship with Linda Olson while Birmingham-based Baskin Law Firm tor and construction-management the divorce case was making its PC by mid-November will have to firm that closed in 2008. way through the courts. answer allegations of misconduct Baskin was her divorce attor- “Everyone knows that it oc- involving sex with a past client, af- ney, and in 2000 obtained Linda Ol- curred. She was my friend, forev- ter he lost a bid to dismiss the case son more than $50,000 in monthly er. Why she chose to file (a com- Friday. alimony plus a $2.1 million home plaint, later) I couldn’t say. But it Baskin, known for representing in Grosse Pointe Farms along with wasn’t adultery. Name it what you celebrity and other high-profile half her husband’s stake in the want, but that isn’t it.” clients, appeared before a panel company. Baskin also said he didn’t violate convened by the Michigan Attorney The state Attorney Grievance Com- any Michigan Rules of Profession- Discipline Board, which denied mission alleges Baskin, who was al Conduct governing attorneys. without prejudice his request for unmarried, had a sexual relation- “I never have had a grievance (be- summary disposition of an April ship with her from late 1999 until fore the discipline board). I’ve never complaint stemming from his rep- September 2003. even had a speeding ticket,” he said. resentation of Linda Olson. His attorney, Kenneth Mogill of “It’s political, absolutely. Calling it Baskin is expected to appeal the Lake Orion-based Mogill, Posner & adulterous was a scurrilous accusa- denial. Cohen, said he expects to appeal tion designed to hurt me.” Beaumont: Five top oncologists quit ■ From Page 1 “There was a difference of opin- continuing his substantial prac- Along with Vicini, Martinez ion on the future direction of the tice in a new environment,” Pitt also promoted the use of accelerat- oncology program,” Stimmell said. said. “I am in the process of assist- ed partial breast irradiation that TAKE YOUR EVENT TO A “The board felt a partnership with ing Dr. Martinez in evaluating his uses a three-dimensional external a for-profit group was not in line legal options.” beam or brachytherapy that re- Championship with our mission of research, clin- Joe Spallina, founding director places the conventional six-week ical and teaching.” of The Arvina Group, an Ann Arbor- breast irradiation. While Stimmell declined to based consulting firm, said it is As one of the largest cancer treat- name the physician company, unusual for radiation oncologists ment programs in Michigan, Beau- Level sources have told Crain’s it is 21st to leave hospital employment for mont in Royal Oak treated 1,445 pa- Century Oncology Inc., a Fort Mey- smaller for-profit companies. tients in 2010 with megavoltage ers, Fla.-based firm with 98 centers “What is going on in Michigan radiation therapy, the second-high- in 15 states, including 10 in South- and nationally is medical oncolo- est in the state, said the Michigan east Michigan with 25 physicians. gists, radiation oncologists and Certificate of Need Survey. Officials for 21st Century in Fort surgeons are becoming employed University of Michigan Hospitals in Meyers and Farmington Hills by hospitals,” Spallina said. Ann Arbor treated 1,473 patients were unavailable for comment. Martinez, who came to the U.S. with megavoltage radiation in Stimmell also confirmed that after graduating from medical 2010. Martinez is no longer chairman of school in Bogota, Colombia, has Megavoltage radiation therapy the radiation oncology depart- been with Beaumont Hospital is a treatment that focuses high ment. She said an interim chair- since 1985, when he was appointed doses of radiation at tumors while man will be named shortly, fol- chairman of the department. causing less damage to surround- lowed by a national search. He is known for pioneering re- ing tissues. Meeting & Event Spaces at Olympia Entertainment Venues Michael Pitt, an attorney with search development of intensity Overall, three-hospital Beau- Call For Details 313-471-3333 Royal Oak-based Pitt McGehee modulated radiotherapy, a tech- mont Health System performed Palmer Rivers & Golden PC, said in a nique that focuses radiation treat- 148,452 radiation oncology proce- Special.Events@Olympia Entertainment.com statement to Crain’s that Beau- ment. He also has designed appli- dures in 2010. mont “severed its relationship” cations used in the treatment of Jay Greene: (313) 446-0325, with Martinez. patients with gynecological and [email protected]. Twitter: @jay- “Dr. Martinez looks forward to other pelvic malignancies. bgreene 20110926-NEWS--0025-NAT-CCI-CD_-- 9/23/2011 5:42 PM Page 1

September 26, 2011 CRAIN’S DETROIT BUSINESS Page 25 Barton Malow: Next generation looks at ‘basics’ www.crainsdetroit.com ■ From Page 1 EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or But most decisions about the fu- stake in the company, and the fam- isn’t an option because the compa- To that end, the company invest- [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- ture are being made by Ryan, ily acquired majority control in ny has been so diversified over the ed $7 million in a 400-foot crane 0460 or [email protected] along with Ben’s 1961. years, with a strong presence in in- that can set the turbines in place. DEPUTY MANAGING EDITOR Jennette Smith, brother, Doug The company now is owned by dustrial work, sports facilities, It is currently in Cadillac and will (313) 446-1622 or [email protected] SENIOR EDITOR Bob Allen, (313) 446-0344 or Maibach, 46, 90 employee stockholders, while power plants and medical facilities. travel to Escanaba next. [email protected] who is an owner the Maibach family continues to He cited the firm’s current work Detroit-based Walbridge Aldinger WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- in the company have majority ownership. Of the on renovating the famed Rose Bowl Co. is also building wind farms, 8158 or [email protected] and executive significant Maibach family own- Stadium in Pasadena, Calif., then but in California, New Hampshire COPY DESK CHIEF Gary Piatek, (313) 446-0357 or [email protected] vice president. ers, Ryan and Doug hold the building a gas-fired power plant and Pennsylvania, said chairman ASSISTANT NEWS EDITOR Jeff Johnston, (313) “On the major largest shares. Ben and his sister, nearby for the city of Anaheim. and CEO John Rakolta. 446-1608 or [email protected] decisions, they Sheryl, also have ownership but to “Then we’re on the banks of the Barton Malow, like Walbridge, DATA EDITOR Brianna Reilly, (313) 446-0418, need to be pri- a lesser extent, Ben said. Hudson, working on has been quick to re- [email protected] WEB DEVELOPER Steve Williams, (313) 446- mary,” Ben “But right now, there is more a gas-fired power act to trends and has 6059, [email protected] Ben Maibach Maibach said. “I non-family leadership and owner- plant, and in Orlan- You can’t be a stayed flexible, WEB EDITOR Gary Anglebrandt, (313) 446-1621, make some statements and ask ship than ever before,” said Ben do, working on a ma- “ Rakolta said. [email protected] EDITORIAL SUPPORT Robertta Reiff (313) 446- some questions, but they need to Maibach. jor expansion of Dis- monolith that’s “You can’t be a 0419, YahNica Crawford, (313) 446-0329 live with the results.” ney’s Magic monolith that’s slow NEWSROOM (313) 446-0329, FAX (313) 446- Keeping work in house Kingdom,” he said. slow to react. to react,” he said. 1687 TIP LINE (313) 446-6766 “From a construc- ” “You have to be nim- REPORTERS Succession plan While the company is building tion standpoint, ble, creative, innova- Daniel Duggan, senior reporter: Covers retail, real John Rakolta, estate and hospitality. (313) 446-0414 or Ben Maibach said the transfer of 400-foot-tall windmills rather than there just aren’t that Walbridge Aldinger Co. tive and move quick- [email protected] Jay Greene, senior reporter: Covers health care, power started gradually in 2005. repairs for the Hudson Motor Co. many things that we ly when you need to.” insurance and the environment. (313) 446-0325 or “This company being less depen- like it did in the 1920s, Ryan haven’t tackled. From a technical Walbridge is comparable to Bar- [email protected]. Chad Halcom: Covers law, non-automotive dent on my leadership, my owner- Maibach said future growth lies in standpoint, we feel comfortable ton Malow, with $1 billion of rev- manufacturing, defense contracting and Oakland ship, is something that I had iden- the idea of Barton Malow doing taking on just about any kind of in- enue in 2010 and doing construc- and Macomb counties. (313) 446-6796 or [email protected]. tified as the right direction for the work for clients directly. frastructure or business project.” tion work across the country. Tom Henderson: Covers banking, finance, technology and biotechnology. (313) 446-0337 or company back then,” Ben Maibach In roughly half of Barton Mal- Likewise, Rakolta is part of gener- [email protected]. said. “This is part of that process.” ow’s construction jobs, the compa- ational family leadership — he Nancy Kaffer: Covers small business, the city of Wind power infrastructure Detroit, Wayne County government. (313) 446- The transition to Ryan ny uses its own labor force to pour represents the second generation 0412 or [email protected]. Maibach’s leadership was quick- the concrete floors, hang drywall The company has continued to — with a son, John Rakolta III, in- Bill Shea, enterprise editor: Covers media, advertising and marketing, the business of sports, ened early in 2011 when Les Sny- and perform carpentry, rather lay groundwork for growing involved with the company. and transportation. (313) 446-1626 or der resigned as president to be- than hire subcontractors for the dustries, like alternative energy. “I admire the Maibach family, [email protected]. Nathan Skid: Multimedia reporter. Also covers the come CEO for Russelton, Pa.-based work. “Self-performance” is some- It has won several key contracts and they’ve done a great job of po- food industry and entertainment. (313) 446-1654, construction firm Joseph B. Fay Co. thing Maibach sees as a path for for wind farms in Michigan — in sitioning the company over the [email protected]. Sherri Welch: Covers nonprofits and services. Snyder has a lot of family in Pitts- growth. particular, three DTE Energy Co. years,” he said. (313) 446-1694 or [email protected] burgh, making it the right move, Ryan Maibach said the key is to wind farms to be built next year in Positioning the company in the Dustin Walsh: Covers auto suppliers, steel, higher education and Livingston and Washtenaw said Ryan Maibach. find ways to build market share in Huron and Sanilac counties. next 20 years now sits on Ryan counties. (313) 446-6042 or [email protected] Snyder had been named presi- the business lines that the firm al- Barton Malow is also involved Maibach’s mind. LANSING BUREAU Amy Lane: Covers business issues at the Capitol, dent in 2009 after being with the ready competes in. Ensuring that in building a wind farm in “This transition has become a telecommunications and utilities. (517) 371-5355, company since 2004 — it was the work is done correctly, and done McBain, near Cadillac, for Tra- time for us to take a step back and FAX (517) 371-2492, [email protected]. or 115 W. Allegan, Suite 220, Lansing 48933. Heritage Sustain- first time someone outside the by Barton Malow’s 1,500 employ- verse City-based look at the basics,” he said. “What ADVERTISING Maibach family led the company ees, is a way to grow, he said. able Energy. That work, spread over are our integral values? How do we ADVERTISING DIRECTOR Marla Wise, (313) 446- since 1981. “Looking out 10 to 15 years, I four years, represents about define our culture? What will the 6032 or [email protected] The Maibach family’s involve- think talent in the construction in- $25 million to Barton Malow. world look like in 20 years?” SALES INQUIRIES: (313) 446-6052; FAX (313) ment in Barton Malow goes back dustry will continue to get scarce,” Wind power has been a passion Relying on the company’s mo- 393-0997 ADVERTISING SALES Christine Galasso, Matthew to the beginning of the company; he said. “Rather than rely on other for director of operations John mentum isn’t an option, he said. J. Langan, Lori Tournay Liggett, Tamara Rokowski, carpenter Ben Maibach Sr. be- companies for our future, we want Wozniak, Ryan Maibach said, and “You can never just be on cruise Cheryl Rothe, Dale Smolinski came one of the company’s first to be the best contractor from top is an example of the company fol- control,” he said. “I want my foot CLASSIFIED SALES (313)-446-0351 EVENTS DIRECTOR Nicole LaPointe employees in 1925. to bottom with our own people.” lowing the lead of its executives. on the accelerator.” MARKETING ARTIST Sylvia Kolaski His son, Ben Maibach Jr., was That strategy is different from “John is a big reason we’re do- Daniel Duggan: (313) 446-0414, SALES SUPPORT Suzanne Janik, YahNica Crawford hired in 1938 as a summer laborer. some companies that grow by finding that work,” he said. “And we [email protected]. Twitter: AUDIENCE DEVELOPMENT MANAGER @d_duggan Candice Yopp In 1949, he purchased his first ing new niches. Maibach said that set about making it happen.” MARKETING COORDINATOR Jenny Griffith PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams CUSTOMER SERVICE MAIN NUMBER: Call (877) 824-9374 or write Faurecia: [email protected] Supplier’s expansion includes 800 hires SUBSCRIPTIONS $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. ■ From Page 1 Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or search. “It’s only logical that the American contracts with Toyota enue in 2010 totaled $3.4 billion. “Europe could be staring down a (877) 824-9374. SINGLE COPIES: (877) 824-9374. suppliers of platforms in Europe Motor Co., Honda Motor Co. and com- Heneka projects an average rough economy for a couple REPRINTS: (800) 290-5460, ext. 125; will follow the automakers here.” mercial-vehicle makers Cummins growth of 12 percent across all four years,” he said. “They are not any- (717) 505-9701, ext. 136; or rosie.hassell @theygsgroup.com. The industry’s transition to Inc. and John Deere. business units in the U.S. next where close to through the storm, TO FIND A DATE A STORY WAS PUBLISHED: smaller, more fuel-efficient cars of- Its emissions controls business year. and automakers are cutting pro- (313) 446-0367 or e-mail [email protected].

fers an advantage to suppliers in unit in the U.S. already has seen European automakers’ expan- duction forecasts there. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY Europe, where small cars have 30 percent growth in 2011, Heneka sion into North America also has “If you’re a European supplier, CRAIN COMMUNICATIONS INC. dominated for decades, Swiecki said. benefitted Faurecia. Key customer it makes sense to come to the U.S. CHAIRMAN Keith E. Crain PRESIDENT Rance Crain said. Last year, Faurecia S.A. ac- BMW launched its second plant in and Michigan,” he said. “The next SECRETARY Merrilee Crain Faurecia snagged U.S. plat- quired the bankrupt German exte- Spartanburg, S.C., last fall. Faure- few years in the U.S. market are TREASURER Mary Kay Crain Executive Vice President/Operations forms in recent years, including riors supplier Plastal GmbH and its cia built a new seat plant in Cot- going to be better than in Europe. William A. Morrow the Chevrolet Equinox and Mal- Spanish sister company Plastal tondale, Ala., to supply Mercedes- If you’re looking to mitigate your Group Vice President/Technology, Manufacturing, Circulation ibu, the Ford Fiesta and the Fiat Spain SA in a move that is expect- Benz — previously not a Faurecia compression in Europe, here is a Robert C. Adams 500. ed boost U.S. business. Inexpen- customer in North America. It also good choice.” Vice President/Production & Manufacturing Dave Kamis “Fewer and fewer truck parts sive technology for painting acquired an interior components In the meantime, Faurecia will Chief Information Officer are needed in the U.S.,” he said. small-batch exterior body parts plant in Tuscaloosa, Ala., to supply continue to strengthen its foothold Paul Dalpiaz Director of Audience Development Operations “That means that a supplier like developed by Plastal, called another new customer, Nissan in the states — maybe even in the Michelle Roth Faurecia that is already making NewTech, has received a warm re- North America Inc. city of Detroit. G.D. Crain Jr. Founder (1885-1973) parts for small cars in Europe sud- ception in Europe, and Faurecia “Despite all the skepticism over Heneka said the supplier has Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: denly has demand in the U.S.” is shopping it to U.S. customers, the past few weeks, it’s not looking also been approached by Detroit 1155 Gratiot Ave., Detroit MI 48207-2732; (313) Faurecia has piggybacked on Heneka said. bad for us,” Heneka said. “We’re Mayor Dave Bing on the possibili- 446-6000 Cable address: TWX 248-221-5122 AUTNEW DET the trend by expanding its emis- Due to the acquisitions, Faure- cautiously optimistic. The vehi- ty of bringing a plant to Detroit. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 sions controls technology to the cia North America was able to cles we’re on, inventories are at “We haven’t discussed is published weekly, except for a special issue the third week of January, a special issue the fourth U.S., facilitated by its $436 million bring more production in-house, historic lows, and we’re not seeing specifics,” he said. “Michigan has week of August, and no issue the third week of acquisition of Troy-based Emcon reducing its supplied parts from a slowdown in sales.” been good to us, so we’ll keep the December by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals Technologies LLC from New York 78 percent outside of the company Van Conway, CEO of Birming- possibility open in the future,” he postage paid at Detroit, MI and additional mailing private investment firm One Equity down to 50 percent since 2006. ham-based advisory firm Conway said. offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation Partners. Emcon, a former ArvinMer- “Right now, we are where we Mackenzie Inc., said investments Dustin Walsh: (313) 446-6042, Department, P.O. Box 07925, Detroit, MI 48207- itor business unit, was projected to want to be in the U.S.,” Heneka from European automakers and [email protected]. Twitter: 9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2011 by Crain provide revenue of $7.7 billion said. “We’ve successfully changed suppliers in the U.S. and Michigan @dustinpwalsh Communications Inc. All rights reserved. worldwide to Faurecia. that model.” will continue, given the current Automotive News contributed to Reproduction or use of editorial content in any The acquisition delivered North Faurecia North America rev- volatility in Europe. this report. manner without permission is strictly prohibited. 20110926-NEWS--0026-NAT-CCI-CD_-- 9/23/2011 5:37 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS September 26, 2011 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF SEPT. 17-23

lab space station and 10-ton billion in planned product Friedman Integrated Real Es- Pegasus 2 satellite did in State seeks bids and plant investments. tate Solutions, founded by 1979, according to reports. Ⅲ Ann Arbor-based Ply- Gilbert’s real estate strate- Granholm Most of the satellite will mouth Management Co. has gist, David Friedman. disintegrate in the atmos- for Pure Michigan finished raising its second Ⅲ Gov. Rick Snyder has phere, officials said. But 26 venture capital fund, Ply- signed into law a $400 mil- pieces, representing 1,200 advertising work mouth Venture Partners II, at lion tax on health insurance talks jobs on pounds of metal, were ex- $41 million, just above the claims to pull in more feder- pected to reach the surface. he state is seeking target range. al funds for Medicaid, AP re- The largest chunk was ex- bids on a three-year Ⅲ Fiat North America is ported. The legislation elim- pected to be less than 300 T contract to do the ending its relationship inates a 6 percent use tax on pounds. creative advertising work with Southfield-based Im- Medicaid managed care or- ‘Daily Show’ Jim Stevens, past presi- on its Pure Michigan tourism patto Custom Marketing, the ganizations that the federal dent of the Michigan Intellec- campaign. The work has advertising agency that government doesn’t like. It ennifer Granholm’s book sor at the tual Property Lawyers Associa- been handled since 2006 by created the automaker’s replaces it with a broad- tour took her to Comedy Wayne State tion and a partner at the Birmingham office of first national TV spot show- based, 1 percent assessment J Central’s “The Daily University on health care claims. Troy-based Reising, Ething- McCann Erickson, and the ad ing the Fiat 500 in a drive- Show with Jon Stewart” on School of ton, Barner, Kisselle PC, engi- agency is expected to bid on in theater, Automotive Ⅲ The University of Michi- Thursday to talk about job Medicine, ef- neered and built some of the the new contract. The old News reported. Chrysler gan says it has committed creation. fective Oct. subsystem circuits on deal expires Sept. 30. Group LLC would not pro- some serious errors in its Among other things, the 1. board the satellite in 1987 as vide further details. The book digitizing project and former governor discussed In July an undergraduate at the Uni- CEO of Impatto, Michael is putting new releases on problems with the econom- 2010, Noren, versity of Michigan. ON THE MOVE D’Antonio, did not return a hold, AP reported. The ac- ic development strategy a physician, tion follows a copyright in- Noren Stevens helped build one Ⅲ Greg Lehmkuhl has been phone call seeking com- that pits cities and states said he re- fringement suit filed Sept. of the science instruments, promoted to president of ment. against each other instead signed to spend more time 12 by the Authors Guild, the called HRDI, used to mea- Ann Arbor-based Con-way Ⅲ Carlyle Group LP is of a national strategy that in Illinois with his wife, Australian Society of Authors, sure upper atmospheric Freight Inc. and to executive among the final suitors bid- tries to draw jobs to the U.S. Sheri, who had been diag- a Quebec writers’ group winds to predict the weath- vice president of Con-way ding to acquire Auburn from elsewhere. She also nosed with breast cancer and eight authors. er. He also designed and Inc., its parent company. He Hills-based TI Automotive, advocated for more federal- and remains in treatment. Ⅲ The Detroit City Council built circuits used to run the had been executive vice Bloomberg News reported. state cooperation. However, there were also approved an application to instrument on the satellite. president of operations. He TI Automotive is to pick The full interview, in- rumblings that Noren had a bring the Detroit Grand Prix replaces former President the winning bidder in two cluding portions that didn’t rocky relationship with back to Detroit’s Belle Isle John Labrie, who left in Au- to four weeks with a goal of air, is at thedailyshow.com. some members of the board Penske to be honored next June, the AP reported. gust 2010. closing this year. A couple of comments of governors. Race officials are eyeing Roger Penske, CEO of Ⅲ John Rakolta Jr., chair- from the Twitter universe: Noren continued to draw June 1-3 for the event. Penske Corp. and Penske Au- man and CEO of the De- Ⅲ @jessefuchs: “The his $347,000 annual salary tomotive Group in Bloomfield COURTS Individual Detroit troit-based Tigers Granholm interview on while he was on what was Hills, will receive the 2012 game tickets for po- construc- Ⅲ Former Detroit Tigers tential 2011 American TDS reminded me just how considered a sabbatical. As a Keith Crain/Automotive tion compa- pitcher “Denny” McLain was League Championship Se- idiotically pervasive inter- professor, Noren’s contract News Lifetime Achievement ny Wal- arrested ries games at Comerica state undercutting is in this calls for a salary of at least Award on bridge on the Blue Park will go on sale at 10 country. But what to do?” the $150,000 average salary Jan. 26 dur- Aldinger Co., Water a.m. today, the team said. @BillEvansCT: “Why do of a full professor, university ing the officials said last year. has joined Bridge in For prices and dates, see all failed liberal politicos Washington the board of Port tigers.com/postseason. like Jennifer Granholm of Auto Show. directors of Huron on Ⅲ A proposed govern- MI end up as ‘TV stars’ on Penske, Crashing satellite has Farming- Thursday ment-owned bridge over the cable shows? Your policies once a top Rakolta ton Hills- after a Detroit River, with addition- were tried and failed.” impact on Troy lawyer race car dri- based Agree Realty Corp. and records al U.S. Customs booths, Her hefty 336-page A Gov- ver, has If you’re reading this, the is the company’s 16th check re- would do a better job reduc- ernor’s Story she wrote with business in- McLain dead six-ton satellite that Penske largest investor. vealed an ing border traffic congestion husband Dan Mulhern was terests that encompass car was expected to crash to Ⅲ Dearborn Heights- outstanding arrest warrant and handling future traffic published Sept. 20. The dealerships, truck leasing, Earth over the weekend did- based Vista Maria has from Louisiana for theft of than a second Ambassador book — available for $17.54 n’t land on your house. logistics and manufactur- named Angela Aufdemberge more than $1,500, U.S. Cus- Bridge span, says an inde- in hardcover on Amazon. NASA’s Upper Atmos- ing. His Penske Racing its new president and CEO. toms and Border Protection pendent report by East com, and $15.39 for Kindle phere Research Satellite, or brand has been one of the Aufdemberge had served as said. McClain was turn Lansing-based Anderson Eco- — has 13 five-star reviews UARS, was expected to re- most successful teams in executive vice president of over to the Port Huron Police nomic Group LLC. Also, a re- and two one-star reviews. enter the Earth’s atmos- professional sports. sales development and sup- Department pending extra- port from the nonprofit phere late Friday night or “For his ingenuity as an port at Troy-based Entertain- dition to Louisiana. Michigan Campaign Finance Noren returns to Wayne Saturday morning. Debris entrepreneur and his pas- ment Publications LLC and Network said the owners of was expected to be limited sion for speed and the art of was a director of Vista the Ambassador Bridge Jay Noren is back. to a 500-mile swath. design, Roger Penske is a Maria for 12 years. She suc- OTHER NEWS have spent $4.7 million this Over the summer, the for- The UARS was expected visionary in the automotive ceeds Patrick Zurlinden, Ⅲ Rep. Bob Genetski, R- year on TV ads opposing the mer president of Wayne to be the biggest spacecraft industry,” said Keith Crain, who’d served as interim Saugatuck, has introduced proposed new crossing. State University exercised his to crash uncontrolled into Automotive News editor-in- president and CEO in addi- a bill that calls for the cre- Ⅲ Michigan needs nearly option to return as a profes- Earth since the 75-ton Sky- chief. tion to being COO. ation of a panel to examine $1.4 billion more annually Ⅲ The Macomb-Oakland whether each state univer- for roads and bridges — University Incubator in Ster- sity requires its own board roughly double current ling Heights has hired Julie and investigate ways to re- funding — if the state is to Gustafson as its executive organize the structure to keep its infrastructure director. She had been lower costs. from getting worse and president of the Amoskeag Ⅲ The Detroit Downtown more expensive to fix, ac- BEST FROM THE BLOGS Business Incubator in Man- Development Authority has ap- cording to a study by a chester, N.H., and replaces proved Dan Gilbert’s pur- House transportation fund- READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS David Spencer, former exec- chase of the Lane Bryant ing work group. utive director of Smart- Building, at 1520 Woodward, Holocaust Center gets exhibit Student loan petition misleading Zone Development for Oak- and the Arts League Building, land University. at 1528 Woodward. The OBITUARIES A Facebook petition The Holocaust drive in support of a buildings would be pur- Ⅲ James DunCombe, father Memorial Center has “ budget resolution chased for $337,500 each as of former 36th District Court acquired a World War II- COMPANY NEWS introduced by U.S. Rep. part of a $15 million redevel- Judge Trudy DunCombe era boxcar from Hansen Clarke, D- Ⅲ General Motors Co. will opment of the buildings into and father-in-law of ex-De- Germany used to Detroit, on forgiving transport Jews and other add 360 jobs at its Warren “creative office space,” ac- troit Mayor Dennis Archer, student loan debt prisoners to camps powertrain plant and 285 cording to DDA documents. died of congestive heart fail- doesn’t have all the during the Holocaust. … more in Romulus under A closing will be no later ure Sept. 14. He was 93. details. It will become a terms of a labor agreement than Dec. 20. Another build- Ⅲ Thomas Turner, who led permanent exhibit. negotiated last weekend ing, at 1550 Woodward, was the Metro-Detroit AFL-CIO for with the UAW, Automotive auctioned in a tax sale Mon- two decades, died Sept. 17 Reporter Sherri Begin Welch’s blog ” Reporter Dustin Walsh’s blog on auto suppliers, steel, News reported. All told, GM day and purchased by a JP of complications of about Southeast Michigan nonprofits can be found higher ed and Livingston and Washtenaw counties can has agreed to retain or cre- Wolfe, who gave an address Alzheimer’s disease. He at www.crainsdetroit.com/welch be found at www.crainsdetroit.com/walsh ate 6,400 jobs as part of $2.5 matching the address of was 83. DBpageAD.qxp 9/19/2011 1:32 PM Page 1

THE PROBLEM: YOUR BUSINESS IS GROWING FASTER THAN THE SPEED OF T1s. THE SOLUTION: COMCAST METRO ETHERNET.

*VTJHZ[4L[YV,[OLYUL[KVLZ^OH[SLNHJ`[LJOUVSVNPLZSPRL;JHU»[0[»ZJVTWSL[LS`ZJHSHISLHSSV^PUN`V\[VX\PJRS`HUKLHZPS`KV\ISL`V\YIHUK^PK[O^P[OV\[KV\ISPUN`V\YJVZ[Z:V`V\Y [V[HSJVZ[VMV^ULYZOPWPZSV^LYHUK`V\YI\KNL[NVLZM\Y[OLY(UK[OLWYP]H[LUL[^VYRPZVWLYH[LKI`*VTJHZ[MYVT[OLÄYZ[TPSL[V[OLSHZ[ NP]PUN`V\YI\ZPULZZYLSPHIPSP[`ZLJ\YP[`HUK MHZ[LYZWLLK*VTJHZ[4L[YV,[OLYUL[PZ[OLJOVPJLVMJVTWHUPLZ[OH[YLHSPaLV\[KH[LK[LJOUVSVN`Q\Z[JHU»[JVTWHYL[V*VTJHZ[»Z,[OLYUL[ZVS\[PVU

877-558-7852 | business.comcast.com/ethernet

9LZ[YPJ[PVUZHWWS`5V[H]HPSHISLPUHSSHYLHZ*HSSMVYKL[HPSZ*VTJHZ[(SSYPNO[ZYLZLY]LK DBpageAD.qxp 8/19/2011 3:08 PM Page 1

CAN YOUR CARD HELP LOWER BUSINESS COSTS WITH FREE CHECKED BAGS?

FIRST CHECKED BAG FREE FOR UP TO NINE PEOPLE IN YOUR DELTA RESERVATION.1

1.800.SKYMILES or MYCARDCAN.COM — get up to 25,000 bonus miles.2 THE OFFICIAL CARD OF DELTA AIR LINES

1 Benefit is limited to Basic Cardmembers (not Additional Cardmembers) with the Gold, Platinum, or Delta Reserve SkyMiles® Business Credit Cards. Reservation must include the Basic Cardmember’s SkyMiles® number. Fee waiver also available for passengers traveling in the same reservation as the Basic Cardmember. Maximum nine waivers per reservation. New Cardmembers and Cardmembers upgrading from another Delta SkyMiles® Credit Card product will be eligible for the checked baggage fee waiver benefit after receiving their Card from American Express. Benefit available only on Delta and Delta Connection® carrier flight segments. Waiver does not apply to overweight or oversized bags. Additional terms, conditions, and restrictions may apply. See delta.com/firstbagfree for details. 2 20,000 bonus miles awarded within 2–4 weeks of first purchase; 15,000 miles awarded if upgrading from classic Delta SkyMiles Business Credit Card. Additional 2,500 bonus miles awarded for each approved Additional Card submitted with application — up to 5,000 bonus miles. Offer subject to terms, conditions, and restrictions. See MyCardCan.com for details. American Express is the exclusive U.S. Credit Card partner of Delta. © 2011 American Express. All rights reserved. MCC_BBIZ